The New Zealand dollar dipped today as the central bank’s Governor hinted that he is ready to intervene and prevent excessive gains of the currency.
Reserve Bank of New Zealand Governor Graeme Wheeler said:
When the New Zealand dollar is coming under upward pressure, we want investors to know that the kiwi is not a one- way bet.
At the same time, Wheeler noted that a large-scale intervention is not an option. The kiwi has climbed as much as 40 percent against the US dollar since the end of 2008, being the best performer after the Australian dollar among the most-traded currencies.
NZD/USD dropped from 0.8465 to 0.8364 and NZD/JPY sank from 79.21 to 78.29. as of 12:48 GMT today.
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