New Zealand Dollar and Australian Dollar still dearer
According to the financier Jim Rogers, the most awful performers this quarter amongst the other main currencies of the world, Australian and New Zealand dollars are expected to make a comeback. Mr. Jim also told one of the TV channel that he still possesses the Australian Dollar and he is not going to sell it. He was of the view that the reversal of the carry trade will not be for long. Both New Zealand’s and Australia’s currency are two of the superior currencies in the world.
There is a standard rate of interest of seven percent of Australia and for New Zealand it is eight percent. When you compare it with the comparing price of Japan it is 0.5 percent. It is evident that Australian Dollar decreased to eighteen percent in the eight weeks since it reached to a very respectable position on July 16 and it came down under 80 American cents. This happened for the first time since August 2007 and the New Zealand’s Dollar is trading two year low.
Mr. Jim was the person who rightly forecasted about the launch of the commodities in the year 1999 and also gave a comment that he is going to purchase main sufferers of the carry trade like Swiss Franc and Japanese Yen. He also supports Chinese Yuan, Singapore Dollar, and expects American Dollar to become stronger.
Mr. Jim was of the view that he is awaiting for the Dollar to carry on the rally which will make him to sell off the Dollars. The Dollar will probably take some weeks, might can take months, and can be a year to recover as it was in a real bad position.
Mr. Jim who is the Chairman of Roger Holdings of Singapore was of the view that he is still hopeful that in the long run the commodities like oil will witness a hike. The prices of the crude have came down around thirty percent since going up to a record on July 11 at $147.27 a barrel. He commented that it is not the end of the bull market as no one had find out any oil and the depression across the world will probably affect the demand.