N.Z. Central Bank May Move to Weaken Own Currency, UBS Says

The Reserve Bank of New Zealand may flag its intention to sell its own currency to stem a record advance that threatens efforts to lift the economy out of the worst recession in at least three decades, UBS AG said.

The New Zealand dollar soared 25 percent since April, the second-best performer against the U.S. dollar after South Africa’s rand. “The Reserve Bank has regarded this kind of surge in the exchange rate as tightening monetary conditions,” Finance Minister Bill English said May 29. Governor Alan Bollard is forecast to keep the nation’s benchmark rate unchanged at a record low 2.5 percent or cut it at tomorrow’s policy meeting. Read more about the Reserve Bank of New Zealand…