New Zealand Dollar Hovers at Over 6-Week Low
The New Zealand dollar slipped to around $0.579, hovering at a more than six-week low, as the greenback held firm amid elevated US inflation in August. The data reinforced expectations that the Federal Reserve will raise interest rates at its meeting later this week. Meanwhile, investors are awaiting New Zealand’s second-quarter GDP data for fresh clues on the health of the economy and the Reserve Bank’s interest-rate path. The economy is expected to have grown at a sluggish pace in the three months to June, when businesses and consumers grappled with sharply higher fuel prices. Earlier this month, the central bank raised its policy rate by 25 basis points to 2.75% for a second consecutive meeting, but signaled that any further tightening would be measured as it warned of growing risks to the economic outlook.
579, hovering at a more than six-week low, as the greenback held firm amid elevated US inflation in August. The data reinforced expectations that the Federal Reserve will raise interest rates at its meeting later this week. Meanwhile, investors are awaiting New Zealand’s second-quarter GDP data for fresh clues on the health of the economy and the Reserve Bank’s interest-rate path. The economy is expected to have grown at a sluggish pace in the three months to June, when businesses and consumers grappled with sharply higher fuel prices.
75% for a second consecutive meeting, but signaled that any further tightening would be measured as it warned of growing risks to the economic outlook.