New Zealand Dollar Hits 2-Month Low

The New Zealand dollar dropped to around $0.576, reaching its lowest level in two months, as the US dollar strengthened amid expectations for the Federal Reserve to lift interest rates this week. The kiwi also faced some pressure from signs of weak domestic demand, with electronic card spending falling 0.9% from the previous month in August amid elevated petrol prices and borrowing costs. Attention now turns to New Zealand’s second-quarter GDP data on Thursday, with analysts expecting only modest growth. Markets are currently pricing in a 60% chance that the Reserve Bank will deliver another quarter-point rate hike at its October meeting, despite policymakers signaling that the pace of rate increases is set to slow.