Disliked{quote} While the RBNZ is raising interest rates direct intervention would indeed be expensive and a waste in time - basically paddling in circles with OCR paddling one way and intervention the other. This is one of the key reasons there hasn't been any intervention to date as the fourth and final of RBNZs intervention criteria haven't been met (likelihood of success). However... if the RBNZ decides to take its foot of the pedal post a hike this week that effectively pulls the OCR paddle from the water for the next 4-6 months leaving direct intervention...Ignored
I think the fact that its the 8th or 9th most traded currency in the world yet its the 55th largest economy (2013 figure) has a large part to play. Most of the money flows are speculative and coming from outside of New Zealand