RBNZ’s Spencer: NZD is "in the vicinity of fair value

The Reserve Bank of New Zealand (RBNZ) acting Governor Spencer is reportedly on the wires now, via Reuters, commenting on the exchange rate value in an interview before his imminent handing over to the newly appointed RBNZ Governor Adrian Orr.

Main Headlines:

RBNZ shouldn't comment on the NZD unless there is concern.

NZD is "in the vicinity of fair value".

“Forecasts still assume some NZD depreciation”.

“In my view, we should only comment on the currency if it's really pretty clear that it's out of alignment and you're wanting to have some impact, some sort of jaw-boning effect.

I'm about to leave, so I can't judge what approach Adrian will take.

But in the past we have got into this situation where we sort of had to make a statement about the currency and if we didn't the market was going to react.

I just thought that's not a good situation to be in”.