New Zealand’s central bank, the Reserve Bank of New Zealand (RBNZ) has admitted that it had made an intervention in the foreign exchange markets in the previous month in order to lower the value of the currency.

While speaking in front of the Parliament's finance and expenditure select committee, Governor Graeme Wheeler said, “That intervention will not materially change the level of the exchange rate but could take potentially the tops off rallies. In terms of activity, there's been an intervention.”

The New Zealand dollar fell to 83.63 US cents from 84.48 cents before the remarks by the governor before the committee in Wellington. The trade-weighted index recorded a fall to 77.71 from 78.18. The central bank has not revealed the size of the intervention and it will be published in the balance sheet, according to deputy governor Grant Spencer.

The central bank in the country had previously intervened in 2007 by selling a net $2.2 billion over two months. Analysts said that the move was aimed at slowing down the pace of climb in the Kiwi against the US dollar.

Governor Wheeler has recently said that New Zealand’s national currency remains overvalued and also warned that trends in the property market was threatening the country's financial system. He was speaking at a briefing for the bi-annual Financial Stability Report.