Wheeler Says RBNZ Could Intervene, Warns on ‘One-Way’ Bets
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New Zealand central bank Governor Graeme Wheeler said the monetary authority is prepared to step in to damp the nation’s currency. The so-called kiwi tumbled.
“When the New Zealand dollar is coming under upward pressure, we want investors to know that the kiwi is not a one-way bet,” Wheeler said in a speech to manufacturers and exporters in Auckland. “The Reserve Bank is prepared to intervene to influence the kiwi. But given the strength of recent capital flows, we can only attempt to smooth the peaks.”