The RBNZ Tries to Talk the Kiwi Dollar Down but no Success

The New Zealand dollar, against its major G 20 counterparts, including in the NZD/USD Forex market was a bit resilient this morning. Despite an assault, or attempt by the Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler to jawbone the Kiwi dollar lower.

This morning, the RBNZ Governor Graeme Wheeler spoke to the Select Committee of the country’s Parliament. He was unusually explicit for a central banker on the subject of the Kiwi dollar.

Wheeler said that the RBNZ “would like to see a lower exchange rate.” He then reminded Kiwi dollar traders around the world that intervention in the foreign exchange market is “always open” to the central bank. Wheeler stated that strong domestic growth has boosted demand for the New Zealand dollar. He also said that he does not feel a rate cut was needed to bring inflation back up to the bank’s two percent target level.

Kiwi Dollar Trades Steady Despite Comments

Despite Wheelers uncharacteristically strong words, the New Zealand dollar, across the board was resolute and did not fall very far this morning.

There are rising tensions between North Korea and the United States. The US has threatened, President Donald Trump in comments, to reign fire and fury down upon North Korea and the rogue state has threatened the US territory of Guam. The incipient US Dollar remains weak across the board. The financial markets have more pressing things to worry about for now and weakening the NZD currency unit will have to wait.

Central bank head Wheeler joins Reserve Bank of Australia Deputy Governor Christopher Kent this week who is also worrying about the strength of their local currency.