N.Z. Dollar Falls on Outlook for Economy, Interest Rate Cut

The New Seeland dollar drop amid
expectations that economical growing will decelerate this year, prompting
the cardinal depository financial institution to cut involvement rates and damping investor
demand for the nation's yields.

Consumer assurance dropped to the last in almost two
years in April, adding to marks domestic demand and economic
growth will slow, according to a Colmar Brunton opinion poll for
Television New Seeland Ltd. Ten of 16 economic experts surveyed by
Bloomberg News last hebdomad anticipate Modesty Depository Financial Institution Governor will cut rates in the 4th quarter.

''The Modesty Depository Financial Institution is slowly but surely inching toward the
start of a important moderation cycle,'' said , currency
strategist at red blood cell Capital Markets in Sydney. ''With the market
continuing to underestimation the extent of the likely Reserve
Bank action, we stay New Seeland dollar negative.''

New Zealand's currency bought 78.98 U.S. cents at 9:25 a.m.
in Duke Of Wellington from 79 cents inch late New House Of York trading on April 18.

Fifty seven percentage of 1,000 people polled by Colmar
Brunton anticipate the economic system to decline over the adjacent 12 months,
the peak degree of pessimism since May 2006, the Auckland-
based research company said.

Finance Curate last hebdomad said the outlook
for the economic system is ''challenging.'' Economic growing will decelerate to
1.6 percentage this twelvemonth from 3.1 percentage in 2007, according to the
median prognosis of 12 economic experts surveyed by Bloomberg. Some
analysts anticipate growing as slow as 1.1 percentage this year.

Cut From Record High

Traders anticipate 93 footing points of charge per unit cuts over the next
year, according to an index calculated by Recognition Switzerland based on
overnight swaps. A footing point is 0.01 per centum points.

RBC's Trinh anticipates Bollard will get cutting the official
cash charge per unit from a record-high 8.25 percentage in the 4th quarter,
and prognoses a charge per unit of 6.25 percent by the 3rd one-fourth of
2009. Inflation is above the 1 percent-to-3 percentage scope that
Bollard targets, ensuring he won't cut involvement rates earlier,
she said.

All 16 economic experts anticipate Bollard will maintain the rate
unchanged at a reappraisal on April 24.

New Zealand's benchmark charge per unit is 7.75 percentage higher than
Japan's, making the currency a favourite for the so-called carry
trade where investors borrow cheaply to put in states with
higher yields. The currency rose to 82.1 hankering today, matching a
five-week high.

New Seeland 10-year government chemical bonds fell. The output on the
6 percentage short letter owed December 2017 rose 2 footing points to 6.46
percent, according to information compiled by Bloomberg. The three-year
bond output was unchanged at 6.68 percent. Chemical Bond outputs move
inversely to prices.

To reach the newsman on this story:
in Duke Of Wellington at
.