The New Zealand dollar dropped today after Prime Minister John Key expressed opinion that the currency’s strength is still excessive and voiced hope that the kiwi will depreciate.
Key said today:
We are likely to see a depreciation of the New Zealand dollar against the U.S. dollar, and thatâs welcomed because the governmentâs view is that foreign-exchange rate is still overvalued.
Last week, Reserve Bank Governor Graeme Wheeler also noted that the currency (nicknamed kiwi) “remains high”. Such comments suggest that policy makers may take steps to weaken the kiwi.
NZD/USD fell from 0.8071 to 0.8016 after rallying to 0.8097 and NZD/JPY dropped from 79.16 to 78.35 as of 18:00 GMT today.
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