RBNZ Move Pushes Kiwi Down Across The Board, Monday, June 11, 2007 4:37:22 AM

The New Zealand currency dropped against its major counterparts during the early deals on Monday in New York. This was likely influenced by the Reserve Bank of New Zealand`s intervention in the foreign exchange market to sell New Zealand dollars. The central bank said that the move was intended to check the “exceptional and unjustified” level of the exchange rate.

The RBNZ Governor Alan Bollard said that, “This action does not prejudge the future direction of monetary policy, which as always will remain dependent on emerging economic trends.”

During the late deals on Sunday, the New Zealand dollar trended lower versus the U.S. currency. At about 12:30 am ET Monday, the pair gained a few pips but the gains were given back soon after. The Kiwi touched a low of 0.7481 at 3:20 am Eastern Time and the pair touched this level on last Friday. The Kiwi then ticked up slightly and fetched 0.7507 against the Greenback as of 4:35 am ET.

In the evening hours on Sunday, the New Zealand dollar traded in a tight range against its Australian counterpart. The Kiwi strengthened slightly at about 7:30 pm ET but it entered a range again soon after. At about 10:25 pm Eastern Time, the Kiwi fell sharply and extended its downtrend during the very early deals on Monday. As of 4:35 am ET, the pair traded at 1.1236 and this is a 6-day low.

The New Zealand currency moved sideways versus the Japanese Yen until about 6:05 pm ET on Sunday. Thereafter, the pair slipped slightly but it followed a sideways movement within half an hour. However, at about 7:30 pm ET, ahead of the release of the Japan Q1 GDP data, the Kiwi made some advances and carried over its uptrend amid the release. But the Kiwi dropped heavily at about 8:25 pm ET and continued its downtrend into the early hours on Monday. As of 4:35 am Eastern Time, the Kiwi fetched 90.99 against the Yen and this a 2-day low for the pair.

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