RTTN:NZ Dollar Falls As FinMin Says Weak Currency Is Comfortable
The New Zealand dollar traded lower against other major currencies in the Asian session on Wednesday, as the country's Finance Minister Bill English said that the economy would be more healthy on lower kiwi exchange rate.
While speaking to Bloomberg, English told that the kiwi exchange rate in high 70's against the U.S. is more preferable.
New Zealand's exporters have dealt with strong currency levels seen during the last four or five years. However, the economy would be comfortable with a low valued currency which profits exporters, English said.
"We're in a pretty good position to benefit from any relaxation of pressure on the Kiwi exchange rate," he added.
New Zealand saw a seasonally adjusted current account deficit of NZ$2.16 billion in the second quarter of 2013, Statistics New Zealand said today.
That missed forecasts for a shortfall of NZ$1.9 billion following the revised NZ$2.1 billion deficit in the first quarter.
The kiwi edged down to 1.6256 against the euro, reversing from Tuesday's 3-1/2-month high of 1.6188. The kiwi may face support around the 1.635 area.
The kiwi ticked down to 1.1373 against the aussie and stabilised thereafter. The kiwi may possibly find support around the 1.146 level.
The kiwi weakened to 0.8214 against the greenback, pulling away from 4-month high of 0.8250 hit on Tuesday. On the downside, the kiwi may find support at the 0.81 area.
Meanwhile, the kiwi that fell to 81.43 against the yen has moved back shortly thereafter. The pair closed Tuesday's deals at 81.65.
The Eurozone construction output for July is due in the European session.
The U.S. building permits and housing starts for August are due in the New York session.
The Federal Reserve's monetary policy announcement is due at 2:00 pm ET. The interest rates are expected to keep unchanged at 0.25 percent.
