Kiwi Rises Against Greenback and Yen in New Year

January 6, 2009 International FinanceInternational TaxationNew Zealand Finance  No comments

An improved tax outlook in the U.S. and best Christmas in record in NZ, sees the New Zealand Dollar (Kiwi) rise against both the U.S. Dollar (Greenback) and the Japanese Yen.

With hopes pending on President Elect Barack Obama’s proposed U.S. Economic stimulus package, American investors are apparently more open to the prospects of higher yield yet higher risk investments. In effect lowering demand for safer currencies like the Japanese Yen and raising that for the likes of the Kiwi. The package prosposes to aid joblessness and relieve tax payers earning below USD$200,000 a tax break of USD$500, or USD$1,000 for couples.

Combined with the highest Christmas season spending on record and positive first weeks of 2009 New Zealand Stock Exchange trading, the Kiwi is seeing positive resurgences against numerous currencies. The kiwi has seen a seven week high against the Yen, reaching 54 Yen, and a month high against the Euro just below 0.425.