Kiwi in Focus as Dairy Prices Continues Fall - JP Morgan

        0251 GMT [Dow Jones] Falling dairy prices are "now bringing [the Kiwi dollar] into sharper focus," write JP Morgan analysts, after dairy products posted their sixth consecutive fall in the latest of the twice-month GlobalDairyTrade auctions, held Tuesday. The GDT Price Index fell 1.1% from the previous auction. New Zealand's central bank has said the dollar is overvalued, but that wasn't such a problem when "dairy prices were overshooting forecasts," the house adds. But now with dairy prices falling and the Kiwi staying high, "the small open economy is experiencing a net tightening in monetary conditions." The New Zealand dollar softens a tad, down 0.58% at US$0.8690 Wednesday morning, on comments by RBNZ governor Graeme Wheeler alluding to possible forex market intervention. (isabella.steger@wsj.com)
        (END) Dow Jones Newswires

        May 06, 2014 22:51 ET (02:51 GMT)