Remarks by the top official with the central bank of New Zealand pulled down the nation's monetary unit on Wednesday against all 16 of its major counterparts, Bloomberg reports.
While addressing manufacturers and exporters in Auckland, Governor Graeme Wheeler with the Reserve Bank of New Zealand said intervention is readily available and a very viable option. The New Zealand dollar fell about 1 percent against the world's reserve currency.
The remarks came after economic data indicated the most recent dairy auction, which was earlier this week, indicated average milk prices gained more than 3 percent after an auction about 14 days ago, The Wall Street Journal reports.
"This was a very strong result, taking prices to +8.9 percent since the start of the year," strategist Kymberly Martin with BNZ FX told The Wall Street Journal on Wednesday. "This is in line with our broader view that positive New Zealand commodity price trends should help underpin the NZD this year."
The kiwi has advanced more than 40 percent against the world's reserve dollar during the past 48-plus months.
Wheeler said during his speaking engagement that the Reserve Bank of New Zealand may intervene under suitable circumstances, The Wall Street Journal reports.
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