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- Thread starter Paul
- Start date
Haukur Gudnason
::President Scouser::
heh..this will pan out into another iraq thread from the financial perspective 
It is a part of the mix, but imo it has more to do with the fact the US have been running massive trade deficits for some time now. They are importing more than they are exporting, and the money that is going out isn't necessarily coming back in via foreign investment in the US. They are choosing to put their money elsewhere.
It has been falling for awhile now, the NZ dollar has been steadily rising against the US dollar since before the war. It was around 40, but has risen to 60/65 recently.
But I can't speculate on the individual psychology of people involved in the currency market and the whole mix is a pretty complex web.
At this stage anyway, it is good to see that a downturn in the US doesn't mean a global slump, which is of course what we always get threatened with.