News Headline Summary

Reserve Bank of New Zealand's governor Wheeler says RBNZ ready to intervene if circumstances are right and the NZD is overvalued

Says:

- Manufacturing decline not just USD story.
- Exploring macro-prudential instruments.
- Want investors to know that Kiwi is not a one-way bet.
- FX intervention unlikely to have sustained impact.
- Capping exchange rate is risky strategy for New Zealand.

Reaction details:

- NZD/USD initially moved higher by 10 pips but the movement has been pared and continued to drop after Wheeler says RBNZ prepared to intervene, trades 0.8420 (-44 pips) last.

Print 02:31, 20 Feb 2013 - Asian News - Source: Newswires