New Zealand Reserve Bank, the central bank, intervened Monday in the international currency markets trying to rein in rising Kiwi dollar.

This is the first time in more than 20 years for the central bank to cool down the hiking momentum of New Zealand currency.

The Reserve Bank confirmed Monday afternoon it had intervened, selling New Zealand dollars.

A Reserve Bank statement said that "we regard current levels of the exchange rate as exceptional and unjustified in terms of the economic fundamentals."

"This action does not prejudge the future direction of monetary policy, which as always will remain dependent on emerging economic trends," said the statement.

The New Zealand dollars reached a peak of 76.40 U.S. cents on Friday, its highest level since being floated in March 1985.

New Zealand's interest rates are among the highest in the 30 member nations of the Organization of Economic Cooperation and Development (OECD), and therefore enticing to overseas investors.

The dollar has dropped almost one cent Monday afternoon to buy 75.30 U.S. cents, 89.33 Australian cents, 56.29 euro cents, 91.45 yen and 38.21 pence.

Source: Xinhua