RBNZ’s Wheeler Concerned about Pressure on Exchange Rate

New Zealand central bank Governor Graeme Wheeler said he sees no opportunity at the moment to intervene in the currency market to counter a “very strong” exchange rate.

“If we see opportunities to make a difference and create uncertainty about the future direction of the exchange rate in traders’ minds, then we would be prepared to intervene,” he said in an interview with Radio New Zealand. Asked if he sees that at the moment, he said: “not at the moment.”

Wheeler is concerned that the New Zealand dollar, which rose to a five-month high this week, will hurt exports and slow the economic recovery. Last month he said interest rates would stay at a record low for the rest of 2013 and he introduced limits on low-deposit home loans to curb property inflation rather than raising borrowing costs.


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