The U.S. dollar held near a six-year peak against the yen early on Thursday and powered to a seven-month high on its New Zealand peer, which fell after the country’s central bank said its current level is “unjustified and unsustainable”.
The kiwi sank as far as $0.8180, bringing into view its 2014 trough of $0.8052 set in February. It has fallen more than 6 U.S. cents from the July high of $0.8839.
“We expect a further significant depreciation, which should be reinforced as monetary policy in the U.S. begins to normalize,” Reserve Bank of New Zealand Governor Graeme Wheeler said in a statement.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.