Investing.com - The Reserve Bank of New Zealand issued a statement Thursday reiterating that the current level of the currency is unjustified and unsustainable and warned of the prospect of a large downward adjustment.
"Past experience suggests that when the New Zealand dollar begins depreciating from an unjustified and unsustainable level, the ultimate adjustment can be large," Governor Graeme Wheeler said in a statement. He added that the RBNZ would welcome any such adjustment.
NZD/USD traded at a session low of $0.8823, down around 1%, after the announcement.