Dollar at four year low

The Herald reported:

The New Zealand dollar dropped, touching a four-year low, after the Reserve Bank abandoned its bias for raising interest rates and said a rate cut was a possibility.

The kiwi fell to 73.27 US cents at 5pm in Wellington and earlier fell as low as 73.18 cents, from 74.52 cents late yesterday. The trade-weighted index declined to 75.83 from 76.79.

Not that long ago some politicians were demanding that the Government intervene and presumably spend billions trying to move the currency level. This is a good reminder how variable the exchange rate can be, and that calls for the Government to intervene are silly and potentially very costly.

Think how much money you can lose by trying to manipulate the exchange rate to get it to the level some politician thinks it should be.