Not so well.
The Greens and Labour want to do here. They say it will lower the currency so our exporters can compete.
Japan is an exporting nation, and the Bank of Japan just pumped 11 trillion yen into the market:
The New Zealand dollar fell against the yen after the Bank of Japan added to its monetary easing, though not enough to weaken its currency appreciably, while markets remain subdued in the wake of Sandy and ahead of US presidential elections.
The kiwi bought 65.32 yen from 65.45 yen at 5pm in Wellington yesterday. The local currency traded at 82.07 US cents from 82.01 cents.
The yen rose against most of its trading peers after the BOJ expanded its asset-purchase program by 11 trillion yen to 66 trillion yen, about meeting expectations.
The kiwi did not get much overnight direction from equity markets, typically correlated with the currency because they are both growth assets, as Wall Street remained closed as New York was buffeted by the superstorm.
“The BOJ stuck to the script, doing just enough to placate the government but no more,” says Mike Jones, currency strategist at Bank of New Zealand. The BOJ “continues to disappoint investors looking for a bazooka approach such as the Fed is using”.
So what happened…bugger all, and the Greens and their hangers on think this is the solution for New Zealand.