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RBNZ Prepared to Sell More Kiwi If Need Be

Posted by WorldWideMarkets . on May 31, 2013 2:53:00 AM

new zealand flag resized 600Reserve Bank of New Zealand central bank governor Graeme Wheeler says the central bank is prepared to step up its NZ dollar selling. This after the RBNZ sold a net NZ$256 million ($208 million) worth of the local unit on the FX market in April, its largest foray in five years. While it was less than the market forecast of NZ$300 million to NZ$500 million for the month, it largely drew a yawn from any policy makers globally and even investors. Wheeler wants to end the kiwi's recent strength and has been consistent in saying the kiwi is overvalued by 15 percent. So far this year, the kiwi is down just 2.4 percent against the dollar despite the RBNZ's machinations and that is probably all due to dollar strength. One wonders if the kiwi would be higher to flat it the RBNZ had done nothing. 


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