NZ Dollar Drops as RBNZ Intervenes

The New Zealand dollar dropped today as the Reserve Bank of New Zealand intervened, selling the currency, and signaled that it may do so again to halt the rally of the kiwi.
Central bank’s Governor Graeme Wheeler said that the bank sold New Zealand dollars and is ready to intervene again. Wheeler thought that interventions are not likely to weaken the currency materially, but can “take potentially the tops off rallies”. It looks like the RBNZ is serious about preventing further appreciation of the kiwi (as the New Zealand currency is nicknamed) and this pushed the currency down.
NZD/USD went down from 0.8455 to 0.8405 (while its daily low was at 0.8359) and NZD/JPY ticked down from 83.71 to 83.09 as of 12:17 GMT today.

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