New Zealand Dollar Holds Advance on Weaker US Dollar
The New Zealand dollar hovers around $0.590 after reaching a two-and-a-half-month high, supported by a weaker US dollar and expectations of another 25-basis-point RBNZ hike next month.
The New Zealand dollar hovered around $0.590 after reaching a two-and-a-half-month high, supported by a weaker US dollar.
The greenback remained under pressure as a series of soft US economic data prompted investors to reduce bets on a Federal Reserve rate hike in September.
The kiwi also found support from expectations that the Reserve Bank of New Zealand will deliver another 25-basis-point rate hike next month, after repeatedly signalling the need to make monetary policy less accommodative.
However, recent economic data have raised doubts about how much further the RBNZ can tighten policy.
Meanwhile, investor sentiment remained cautious amid a lack of meaningful progress toward a peace deal in the Middle East, keeping demand for risk-sensitive currencies such as the kiwi in check.