Economics
Kiwi Drops Against Majors as RBNZ Says Currency Still Overvalued
This article is for subscribers only.
The New Zealand dollar fell against its 16 major peers after the Reserve Bank left benchmark rates unchanged at a record low and said the currency remains overvalued.
The kiwi fell as Governor Graeme Wheeler reiterated that he is prepared to intervene in currency markets to cap gains. The bank lowered economic growth estimates and maintained its forecast for the three-month bank bill yield, suggesting no increase to the benchmark until mid-2014. Declines were tempered as policy makers repeated concern about rising house prices.