New Zealand Dollar Depreciation Encouraged By Central Bank

The New Zealand dollar was lower today on the issues concerning the impact of Germany’s moratorium of short selling on the European economy and after the Governor of the central bank said that the slow depreciation of the currency is what is needed.

The quotes of the New Zealand’s central bank policy makers caused people to guess that the bank isn’t going to increase the interest rate soon and that they maywant the eventual depreciation of the currency. Alan Bollard, the Governor of the Reserve Bank of New Zealand, said:

A slow and steady depreciation of the New Zealand dollar remains a likely outcome for a sustainable recovery of the New Zealand economy, as it would increase export returns and weaken household spending on imported products.

NZD/USD traded today near 0.6786 as of 12:52 GMT, rising from its opening price of 0.6936.