New Zealand Dollar Hits 3-month High as Reserve Bank of New Zealand Announces New Governor

The New Zealand dollar hit a 3-month high of 0.7375 today as Graeme Wheeler, Governor of the Reserve Bank of New Zealand, announced he will not be seeking a second term.

Governor Wheeler will serve out the remainder of his term, which ends on September 26, 2017.

New Zealand’s Minister of Finance, Steven Joyce, said Grant Spencer will succeed Mr. Wheeler as Governor for a period of six months after Wheeler's term is over. Since 2007, Grant Spencer has acted as Deputy Governor and Head of Financial Stability and is currently heading the OECD Committee on Financial Markets.

The abrupt announcement by New Zealand’s central bank sent the NZD/USD currency pair rocketing higher by 50+ pips (0.80 percent) to a 90-day high of 0.7375. The last time the NZD traded this high against the U.S. dollar was on November 8, 2016.

Since the start of the year, the New Zealand dollar has appreciated by more than 6 percent against the U.S. dollar.

NZD banknotes photo by Kristina D.C. Hoeppner