FOREX-Central bank reserve keeps kiwi rising


* Kiwi dollar sees best day in a month after cbank meeting
    * Little sign of concern at appreciation from Reserve Bank
    * Yen gains as oil falls weaken global appetite for risk
    * Eyes on Norges Bank statement due at 0800 GMT
    * Graphic: World FX rates in 2017

    By Patrick GrahamLONDON, June 22 (Reuters) - The New Zealand dollar was the
main mover in an otherwise dormant market in major global
currencies on Thursday, up half a percent after the country's
central bank made no clear effort to talk the currency down at a
regular policy meeting.
    With European stock markets set to fall for a third day,
investors sought the traditional security of the yen, pushing it
around 0.3 percent higher against both the euro <EURJPY=> and
the dollar <JPY=> in the first hour of European trade.
    Dealers said "short" bets against the kiwi had been squeezed
after the central bank sounded several upbeat notes on the
outlook for growth and impact of current exchange rates.
    A number of banks had been calling for more gains for the
kiwi around the meeting, arguing that a 3 percent gain since May
still leaves it well undervalued compared to long term measures
of fair value and others in the commodities currencies bloc more
exposed to falling oil prices.
    "While the RBNZ kept a neutral stance and continued to
pledge to keep rates low for a long time, it did not complain
strongly about the currency's recent strength, which caused the
New Zealand dollar to rise post the decision," analysts from
Credit Agricole said in a morning note.
    By 0700 GMT, the kiwi had climbed 0.5 percent to $0.7256.
    It was also around 0.4 percent higher against both the
Aussie and Canadian dollars - both currencies that tend to be
closely dependent on the prices of oil and other major
    After a dip in the past week, however, there was little sign
of more pain for the group, despite a fall in Brent crude to
less than $45 a barrel overnight. [O/R] The Aussie and the
Canadian dollar were both roughly steady against their U.S.
counterpart <AUD=> <CAD=>.
    In an updated outlook for the year ahead published on
Thursday, Barclays called for the kiwi to gain almost 5 percent
against the Aussie over the next year.
    "The NZD has performed well despite RBNZ trying to dampen
expectations of an early rate rise," the British bank said.
    "Strong net permanent and long-term migration is helping to
support domestic activity and lift business sentiment, but also
... dampening wage pressures. If the RBNZ were to raise rates
faster than expected in 2018, the NZD could outperform."
    The central bank of another major oil producers, Norges
Bank, makes its own regular statement on policy at 0800 GMT. Its
crown currency was 0.1 percent stronger in early trade in
Europe. <NOK=> <EURNOK=>
    The dollar index <.DXY>, which measures the greenback
against a basket of six major currencies, was roughly flat at
97.54, having retreated from a one-month high of 97.871 set on
    The euro was unchanged at $1.1166 <EUR=>
    For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=

 (Editing by Alison Williams)
 (([email protected])(+44207 542
9429)([email protected]))


READ ---  MixBin liquid-filled glittery iPhone cases recalled after reports of chemical burns