This is exactly what we expected would happen with a Trump win, while the opposite would happen with a Kamala Harris win. The low point in September may have been because of the ABC debate between the two which was manipulated to make Kamala look as good as possible, as was a CNN interview. After that her handlers refused to let her do media interviews at all.
The USD rise has been against all currencies and for Americans could offset the tarrifs on imports that Trump plans to impose to pay off the massive US debt that Biden has notched up.
Will it continue? Well, that question is one all investment managers study. Our feeling is that at present there is overshooting which will see a correction soon, but it’s crystal ball gazing territory.
Yes, only a little while ago the NZ Pacific Peso, as it was once called, was at almost 60 cents US, today, as I write this, it is 56.28 cents, sorry, PP (Pacific Pesos) US. I am not even going to comment on the hogwash recently spouted by Nicola Willis as nobody takes any notice of anything contrary to political propaganda and spin, especially the fake news media
The ‘Pacific Peso’ (very drole!) is loved by speculators and is we believe the 8th most traded currency in the world; we’re a long way short of being the 8th biggest economy.
I guess I was not quite spot on with “Pacific Peso” the correct term should have been “South Pacific Peso” as per this https://www.nzherald.co.nz/business/economy/inside-money-loony-money-currency-without-safety-catches/PRQ5V766BFCE/ Herald online
4 Jun, 2013 09:30 AM
It also seems that he OZ dollar was described as the Pacific Peso as far back as 1986 chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://static1.squarespace.com/static/6251084785c2bc6
Pacific Peso? When Paul Keating delivered his famous Banana Republic Speech in 1986 the Australian Dollar (AUD) was mocked as the Pacific Peso. Since that time the AUD has traded as high as US $1.10 and as low as US $0.50. During 2022 the AUD has fallen 13% to US $0.63, one standard deviation below its long-term average of approximately US $0.75. On face value, a falling AUD increases the cost of imports, adding further upward pressure to inflation. By raising interest rates aggressively and creating increased demand for US dollars, the Federal Reserve is exporting inflation to the rest of the world. In comparison to the decline against the USD, the Australian Dollar trade weighted index (TWI) has declined by less than 2% during 2022. When assessing the impact of exchange rates on inflation, TWI is the RBA’s preferred measure as the “TWI provides a broader measure of whether the Australian dollar is appreciating or depreciating against the currencies of its trading partners.” The USD represents only 10% of the TWI basket. Base 100 as at 1 Dec 0 1 source RBA, Sintra apital It is possible that natural resources could (once again) provide significant support to the Australian economy and the AUD. Only this time it is predominantly coal, natural gas, lithium and other battery minerals. The Sintra Global Fund is currently 70% exposed to the AUD.