Reserve Bank tries again

Hmmn once again the Reserve Bank intervenes by selling NZ dollars. This time it did not work with the dollar hitting a 19 year high vs the yen and 34 points higher on the trade weighted index.

Of course the dollar may have gone even higher without intervention, but the risk to the Reserve Banks’ reputation is significant. They are unlikely to lose any money in the long term as I am sure at some stage the dollar will drop below US 75c, but remember Reserve Banks should be respected and even slightly feared, not ignored and laughed at.