New Zealand dollar falls to 14-month low after central bank intervenes to sell currency

Markets Associated Press

The New Zealand dollar has fallen to its lowest level in 14 months after the central bank released figures showing it sold the currency.

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Data released Monday by the Reserve Bank showed it sold 521 million New Zealand dollars ($410 million) during August in an effort to push the currency lower.

The bank rarely intervenes in the market. It was its largest sell-off in seven years.

The Kiwi dollar, as it is known, was trading down nearly 2 percent Monday at $0.77. It has dropped 12 percent since July.

In a speech last week, Reserve Bank Governor Graeme Wheeler said the dollar remained overvalued and was trading at unsustainably high levels, a mix that justified possible intervention.

A high dollar is generally good for consumers but bad for exporters.