New Zealand dollar climbs to $0.590, 2½-month high
The NZ dollar rises to $0.590, its strongest level since early June, as the US dollar weakens on reduced expectations for a Federal Reserve rate hike next month and support from expected RBNZ tightening.
The New Zealand dollar rose to $0.590, extending its rebound to reach its highest level since early June, as the US dollar weakened further amid reduced expectations for a Federal Reserve rate hike.
An unexpectedly weak US retail sales report led traders to trim bets on the Fed raising interest rates next month, sending the greenback lower.
The kiwi is also supported by expectations that the Reserve Bank of New Zealand will deliver another quarter-point rate increase next month after repeatedly stressing the need to withdraw some of its policy support.
However, a string of weak economic data has raised fresh questions about how much further the RBNZ can continue tightening policy.
Meanwhile, ongoing tensions in the Middle East are keeping investors cautious.
Fresh Israeli attacks on Tehran-backed Hezbollah in Lebanon, along with threats of additional US sanctions on Iran, clouded the prospects of an imminent peace deal.