Wheeler Says Kiwi May Fall as Intervention Criteria Cited


Todays news from Bloomberg.

Reserve Bank of New Zealand Governor Graeme Wheeler signaled he’s prepared to sell the nation’s dollar to weaken it, saying the kiwi’s current level is unjustified and unsustainable. The currency tumbled.

“The bank would welcome a move towards a more sustainable exchange-rate level,” Wheeler said in an unscheduled statement today. “Unjustified and unsustainable are important considerations in assessing whether exchange-rate intervention is feasible.”

Wheeler has been using similar language since May, signaling the RBNZ’s key criteria for intervention are being met in an attempt to jawbone the currency lower. The kiwi is susceptible to a “significant downward adjustment” over the coming six to nine months, he said today.

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