The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month, selling the kiwi in an attempt to push its value down and benefit exporters, and Prime Minister John Key suggested a "Goldilocks" level far lower than at present.
The kiwi regained some ground overnight and was trading at 77.69 cents at 8am in Wellington, from 77.45 cents at 5pm yesterday. The trade-weighted index rose to 75.80 from 75.61 yesterday.
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The New Zealand dollar has declined from a peak of 88.35 US cents in July after Reserve Bank governor Graeme Wheeler said the high level was unjustified and unsustainable, language signalling he was considering intervention. Wheeler confirmed in the central bank's monthly release of foreign exchange data yesterday that he did intervene in the market last month, selling a net $521 million to push it lower.