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INTERVIEW-NZ dlr should reflect econ fundamentals -finmin

Published 10/05/2009, 03:52 AM
Updated 10/05/2009, 03:54 AM

HONG KONG, Oct 5 (Reuters) - New Zealand Finance Minister Bill English said that he wished the country's strong currency reflected its economic fundamentals rather than currency market flows and that the government was trying to help the economy by getting its finances into shape.

"I wish it would reflect economic fundamentals rather than trade currents in the forex market," English told Reuters in an interview on Monday.

The New Zealand dollar has soared 23 percent against the U.S. dollar this year despite the country suffering its deepest recession on record, getting a boost from investor demand for commodity-linked currencies as the world economy recovers.

English also said that Asian central banks diversifying their reserves and making a small increase in Australasian bonds was making a "big difference" for New Zealand as it tries to lure foreign investors to finance its big deficit. (Reporting by Eric Burroughs; Editing by Jan Dahinten)

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