New Zealand central bank intervenes in forex market
Tuesday, 19 June 2007
WELLINGTON, June 18 (AFP): New Zealand's central bank intervened in the foreign exchange market today in an attempt to bring down the value of the local currency from near two-decade highs, market sources said.
The New Zealand dollar fell from 75.45 US cents in early Today trading to around 75 cents after the central bank starting selling the kiwi, the sources said. Later in the morning, the dollar had regained some ground to 75.25 US cents.
A spokeswoman for the Reserve Bank of New Zealand refused to
confirm whether the bank had intervened.
On Monday last week the central bank intervened in the market for the first time since the currency was floated in 1985, saying the kiwi was at exceptionally and unjustifiably high levels.
The dollar was trading at around 76.20 US cents before the central bank stepped in to bring the currency down by nearly a cent to 75.25 US cents.
Just days before the initial intervention the kiwi hit at peak of 76.40 US cents, the highest level since the 1985 float.
The New Zealand dollar fell from 75.45 US cents in early Today trading to around 75 cents after the central bank starting selling the kiwi, the sources said. Later in the morning, the dollar had regained some ground to 75.25 US cents.
A spokeswoman for the Reserve Bank of New Zealand refused to
confirm whether the bank had intervened.
On Monday last week the central bank intervened in the market for the first time since the currency was floated in 1985, saying the kiwi was at exceptionally and unjustifiably high levels.
The dollar was trading at around 76.20 US cents before the central bank stepped in to bring the currency down by nearly a cent to 75.25 US cents.
Just days before the initial intervention the kiwi hit at peak of 76.40 US cents, the highest level since the 1985 float.