Saying they believe the selloff of the N.Z. dollar against the U.S. dollar is exaggerated, Citigroup (NYSE:C) recommends acquiring the New Zealand dollar today.
The drop in value of the N.Z. dollar came after an announcement by Standard & Poor's that the credit ratings' outlook in New Zealand is negative.
In a note to clients, Citigroup currency strategist Todd Elmer, said, “We believe the intraday selloff in the New Zealand dollar versus the U.S. dollar on the back of the S&P announcement is exaggerated and presents a buying opportunity.”
The issue of concern in New Zealand is their banking system may be inherently weak.
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