New Zealand Dollar Wallows Near 3-Month Low
The New Zealand dollar traded around $0.566, its lowest level since late June, weighed down by a firm US dollar. A run of robust US economic data and hawkish remarks from Federal Reserve officials has strengthened expectations for further rate hikes, supporting the greenback. Meanwhile, President Donald Trump’s rejection of an Iranian proposal to reopen the Strait of Hormuz pushed oil prices higher, raising inflation concerns globally that could prompt further monetary tightening by central banks, including the Reserve Bank of New Zealand. Currently, traders largely expect the RBNZ to deliver a third rate hike in October, after Governor Anna Breman warned last week that persistent increases in oil prices could push near-term inflation somewhat above the central bank’s latest forecast. However, the US dollar’s strength amid a hawkish Fed outlook continued to outweigh support from rising RBNZ rate-hike expectations.
566, its lowest level since late June, weighed down by a firm US dollar. A run of robust US economic data and hawkish remarks from Federal Reserve officials has strengthened expectations for further rate hikes, supporting the greenback. Meanwhile, President Donald Trump’s rejection of an Iranian proposal to reopen the Strait of Hormuz pushed oil prices higher, raising inflation concerns globally that could prompt further monetary tightening by central banks, including the Reserve Bank of New Zealand.
Currently, traders largely expect the RBNZ to deliver a third rate hike in October, after Governor Anna Breman warned last week that persistent increases in oil prices could push near-term inflation somewhat above the central bank’s latest forecast. However, the US dollar’s strength amid a hawkish Fed outlook continued to outweigh support from rising RBNZ rate-hike expectations.