The dollar of New Zealand slipped against the world’s reserve currency on Wednesday after the governor of the Reserve Bank of New Zealand cited the body’s ability to intervene and limit the kiwi‘s increase in value, according to Reuters.
The kiwi has climbed roughly 13 percent thus far this year, spurred by the central bank raising interest rates. Graeme Wheeler, governor of the Reserve Bank of New Zealand, said one option is administering increased sales of the kiwi if it retains its high value.
“If the currency remains high in the face of worsening fundamentals, such as a continued weakening in export prices, it would become more opportune for the Reserve Bank to intervene in the currency market to sell New Zealand dollars,” the central banker told a dairy farmer exhibition, according to The Wall Street Journal.
The New Zealand dollar dropped about 0.5 percent against the U.S. dollar during the midweek trading session.
Thus far in 2014, the kiwi has climbed about a percent against the Australian dollar, according to The Wall Street Journal. The two nations share strong commerce ties.
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