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NZ Dollar Drops as Government Wants Weaker Currency

July 29, 2013 at 18:00 by Vladimir Vyun

All NZD denominationsThe New Zealand dollar dropped today after Prime Minister John Key expressed opinion that the currency’s strength is still excessive and voiced hope that the kiwi will depreciate.

Key said today:

We are likely to see a depreciation of the New Zealand dollar against the U.S. dollar, and that’s welcomed because the government’s view is that foreign-exchange rate is still overvalued.

Last week, Reserve Bank Governor Graeme Wheeler also noted that the currency (nicknamed kiwi) “remains high”. Such comments suggest that policy makers may take steps to weaken the kiwi.

NZD/USD fell from 0.8071 to 0.8016 after rallying to 0.8097 and NZD/JPY dropped from 79.16 to 78.35 as of 18:00 GMT today.

If you have any questions, comments, or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

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