By ELLEN READ and AGENCIES
Billionaire investor George Soros is backing the New Zealand dollar - now at five-year highs - to strengthen further against the flaccid greenback.
Soros said in an interview with CNBC this week that he was betting the US dollar would fall against the euro, and the Canadian,
Australian and New Zealand dollars, and gold.
His comments - in line with what local currency dealers and analysts have been saying for some time - come as the greenback plumbs four-year lows against the euro.
The kiwi hit the latest in a series of five-year highs yesterday, reaching 58.75USc about 9.30am before settling back to nearer 58.6USc.
The head of foreign exchange for ANZ, John Body, said the pace of the kiwi's rise was slowing but the upward trend remained in place. He doubted Soros' comments had much effect on the local currency.
Soros - ranked by Forbes magazine this year as the 37th richest person in the world with a fortune of about US$6.9 billion - told CNBC that he was buying the euro, and the Canadian, Australian and New Zealand dollars in response to comments by US Treasury Secretary John Snow.
"I have to disclose that I now have a short position against the dollar because I listen to what the Secretary of the Treasury is telling me," he said.
Snow said a strong dollar was one that inspired confidence and was difficult to counterfeit, without making reference to its value against other currencies.
He also called the US currency's recent slide "fairly modest", indicating that he was comfortable with the dollar extending its decline.
The kiwi has risen 41 per cent against the greenback since the start of last year, the euro has risen 30 per cent and the aussie has risen about the same.
Soros said the comments were "wrong" and "irresponsible".
Hungarian-born, US-based Soros, 72, gained renown when he made a US$10 billion bet against the British pound in 1992 that led to the resignation of Chancellor of the Exchequer Norman Lamont and Britain's ejection from the European exchange rate mechanism.
