The kiwi is getting crushed.
On Wednesday, the Reserve Bank of New Zealand announced its latest monetary policy decision, keeping rates 3.5% and saying that it expects to keep rates there “for some time.”
In its statement, the RBNZ also said:
“While the New Zealand dollar has eased recently, we believe the exchange rate remains unjustified in terms of current economic conditions, particularly export prices, and unsustainable in terms of New Zealand’s long-term economic fundamentals. We expect to see a further significant depreciation.”
Following this comment, the New Zealand dollar — also called the “kiwi” — is getting slammed and has fallen to a new three-year low against the US dollar.
The latest statement out of the RBNZ follows the Fed’s latest monetary policy statement that saw the Fed keep rates near 0% and say that it will be patient in looking to raise rates.