World’s Best Performing Currency Undermined Due to Intervention by the RBNZ

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World’s Best Performing Currency Undermined Due to Intervention by the RBNZ
World’s Best Performing Currency Undermined Due to Intervention by the RBNZ

In New Zealand, the dollar saw a fall because of the selling of kiwi (New Zealand currency) by the Governor of Reserve Bank, Mr. Graeme Wheeler. The upheaval in the market is result of the intervention by Central Bank of NZ in the forex market, which has happened for the first time in five years. The 12% rise in the Kiwi prices has affected the exporters in the country considerably. The currency today traded at 83.60 U.S. cents, with a slip of 1.1%, the lowest since 1 April.

AUD charts making the world crazy

‘George Soros made a large profit by shorting the Australian dollar’, is the latest rumor buzzing in the Australian financial news arena. The currency saw a steep fall yesterday, when the interest rates were further brought down by the Reserve Bank of Australia.

Overall, traders have a negative feeling for the AUD. A possible reason is the slowing down of China and boom in the commodities market, which greatly influences the AUD.

The Aussie dollar experienced a bearish situation followed by the Reserve Bank’s step; here the interest rate was lowered by 0.25 basis points, from 3% to 2.75%.

The AUD/NZD pair saw a rise of 0.69% to 1.2127. The fluctuations are an after effect of the reserve bank’s involvement in the forex market, which is describes as an unpredictable action.

Meanwhile, the USD remained stronger, as it traded higher against most of its peer. The EUR/USD pair fell by 0.04% to 1.3075.

The US Dollar fell vs. the Japanese Yen slightly by 0.01% to 99.01. For the GBP/USD, it plunged by 0.08% to reach 1.5474, based on the fall of retail sales in the U.K. by 2.2% in April.

The USD/CHF pair moved up by 0.10% to 0.9413, and the same was true for the USD/CAD which moved up by 0.08% to 1.0055.