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New Zealand Dollars Falls on Official Intervention
The New Zealand Dollars (NZD-USD) has fallen sharply today due to an official intervention by the Reserve Bank of New Zealand (RBNZ) to the tune of NZD 0.75 – 1.50 Bln. This is reportedly the first ever forex intervention of the RBNZ. The Kiwi had traded at 0.7645 on Friday (08-June-2007) at its highest level since 1985, the free float of the currency. It is expected that the RBNZ could intervene again in case the NZD moves up to 0.7680 from here. If so, the coming months could see a fall towards 0.7200. It should be remembered that the RBNZ had raised their cash rates by 25 Bps last week to 8.00% from 7.75% previously. The RBNZ on its website has issued a statement confirming the intervention. The content of the press note is given below. [B][U]The Reserve Bank confirmed it has intervened today in the foreign exchange market to [I]sell[/I] [I]New Zealand dollars[/I].[/U][/B] Reserve Bank Governor Alan Bollard said: “As stated in our June Monetary Policy Statement, we regard current levels of the exchange rate as exceptional and unjustified in terms of the economic fundamentals. “This action does not prejudge the future direction of monetary policy, which as always will remain dependent on emerging economic trends. “The action is consistent with clause 4(b) of the Policy Targets Agreement, which requires monetary policy to avoid unnecessary instability in the exchange rate.” Press note source: [URL]http://www.rbnz.govt.nz/news/2007/3036605.html[/URL] Trade Wise, Trade Well!
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- Jun 11, 2007 3:12am Jun 11, 2007 3:12am
- StockKJay
- | Joined Jul 2006 | Status: useless, brainless, stalking troll | 5 Comments
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- Jun 15, 2007 9:35am Jun 15, 2007 9:35am
- StockKJay
- | Joined Jul 2006 | Status: useless, brainless, stalking troll | 5 Comments