New Zealand Dollar Jumps on Chinese Investments
The New Zealand dollar surged today on the speculation that Chinese companies are interested in buying the New Zealand assets.
Interest.co.nz said that China Investment Corporation, a sovereign wealth fund, is planning to invest in the South Pacific nation’s assets, including government bonds, companies and dairy farms. According to the website, the company may set aside 1.5 percent (equivalent of about NZ$6 billion) of its foreign exchange reserves for investments in the New Zealand assets. Finance Minister Bill English said he “won’t be surprised” to see China’s companies investing in the county. English stated that New Zealand plans to double its exports to China within four years.
NZD/USD jumped to 0.8087 from 0.7974 today as of 16:38 GMT after reaching the intraday high of 0.8116. EUR/NZD slipped to 1.7441 from 1.7637.
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Earlier News About the New Zealand Dollar:
- New Zealand Dollar Rebounds as Stocks & Commodities Recover (2011-05-24)
- New Zealand Dollar Gains on Good Economic Outlook (2011-05-20)
- New Zealand Dollar Gains on PPI & Asian Stocks (2011-05-18)
- New Zealand Dollar May Be Overvalued Says IMF (2011-05-10)
- Employment Data from New Zealand Boosts Kiwi (2011-05-04)