Kiwi dollar rises near $0.589 as Fed rate-hike bets fade
The New Zealand dollar rose to around $0.589 on Friday after comments by Fed Governor Christopher Waller. He said he would support leaving rates unchanged if inflation pressures ease, while NZ signalled a less aggressive tightening path.
The New Zealand dollar rose to around $0.589 on Friday, extending gains from the previous session as the US dollar came under pressure following comments from Federal Reserve Governor Christopher Waller.
Waller said he would support leaving interest rates unchanged if inflation pressures continued to ease, prompting investors to trim bets on a Fed rate hike later this month.
On the domestic policy front, the Reserve Bank of New Zealand raised interest rates for a second consecutive meeting earlier this week but signalled a less aggressive path for further tightening.
This has led traders to increasingly expect the central bank to hold rates at its next meeting in October, limiting the kiwi’s upside.
Despite its recent gains, the kiwi is down 0.5% this week, on track for a second straight weekly loss.