Trump key to currency volatility say NZ businesses
(10 April 2017 – New Zealand) According to the latest round of ASB Bank’s Kiwi Dollar Barometer, US President Donald Trump is expected to be the main driver of currency volatility over the next year.
New Zealand importers and exporters said Trump’s influence will be the key instigator of movement in the Kiwi dollar while revealing a new popularity in the Chinese yuan.
Meanwhile, outcomes of elections across Europe, in countries such as France and Germany, took second place as a source of concern over the dollar, while Brexit was at number three.
Larger businesses in New Zealand (i.e. those with a turnover of A$150 million plus) placed European elections as the biggest cause of foreign exchange volatility. In contrast, domestic political outcomes registered as a higher concern for smaller firms.
The Barometer also found that 54.5 percent of all businesses trade in the Chinese currency. Of those that currently did not trade in Chinese currency, 36.7 percent expected they would within the next two years.
New Zealand importers and exporters said they expect the Kiwi dollar to depreciate slightly against the United States dollar over the next 12 months.
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