Borg Joins Wheeler in Escalating Response to Currency Gains

Sweden’s government abandoned its hands-off stance on the krona and New Zealand announced it sold the kiwi, joining a growing band of countries to escalate their response to strengthening currencies.

The New Zealand dollar fell to a five-week low after Reserve Bank Governor Graeme Wheeler said the central bank sold the kiwi and can do so again to protect growth. In Sweden, Finance Minister Anders Borg said the krona’s appreciation warrants central-bank consideration. The won’s advance prompted Kim Seong Wook, a director in South Korea’s finance ministry, to say the government will closely monitor any “unnecessary movement” that increases exchange-rate volatility.