Quote Originally Posted by Daytr View Post
Agreed re flight to safety, but NZ is a net importer so the balance of payments each month is against you.

It's far more likely that it will be a USD move than an NZD move that breaks the trend.
Agreed about the chart, and that it will primarily be a USD move. But US is a net importer so the balance of payments each month is against them too.

A weaker domestic currency stimulates exports and makes imports more expensive. This can suppress import demand, and can be disinflationary.

A strong domestic currency hinders exports and makes imports cheaper. This can boost import demand, can be inflationary, aggravate BoP, and deficits.