Kiwi Dollar Falls to Lowest Since November 2025
The New Zealand dollar slipped to around $0.562 on the first day of October, hitting its lowest level since November 2025, as broad-based US dollar strength continued to weigh on the currency. The greenback was supported by a sustained rise in US Treasury yields, with elevated oil prices fueling concerns over persistent inflation and reinforcing expectations for further rate hikes by the Federal Reserve. For the same reason, markets have also increased bets on another Reserve Bank of New Zealand rate hike at its October meeting. However, support from rising RBNZ rate expectations has been outweighed by the broader rise in US yields and expectations for tighter Fed policy, keeping the US dollar robust. The prolonged conflict in the Middle East and its inflationary impact also pose risks to New Zealand’s economic recovery, further weighing on sentiment toward the currency.
562 on the first day of October, hitting its lowest level since November 2025, as broad-based US dollar strength continued to weigh on the currency. The greenback was supported by a sustained rise in US Treasury yields, with elevated oil prices fueling concerns over persistent inflation and reinforcing expectations for further rate hikes by the Federal Reserve. For the same reason, markets have also increased bets on another Reserve Bank of New Zealand rate hike at its October meeting. However, support from rising RBNZ rate expectations has been outweighed by the broader rise in US yields and expectations for tighter Fed policy, keeping the US dollar robust.
The prolonged conflict in the Middle East and its inflationary impact also pose risks to New Zealand’s economic recovery, further weighing on sentiment toward the currency.