New Zealand Dollar Languishes Near Multi-Month Lows

The New Zealand dollar steadied around $0.561, close to its weakest level since November 2025, and was on track for its longest streak of weekly losses since early 2025. The kiwi has been pressured by a strengthening US dollar and a sharp rise in oil prices, which is threatening New Zealand’s fragile economic recovery. While higher energy prices is adding to inflationary pressures and reinforcing expectations of further Reserve Bank of New Zealand rate hikes, it is also eroding household purchasing power and raising business costs, potentially weighing on domestic demand and growth. Political uncertainty ahead of November’s general election has also added another headwind for the currency. The kiwi was down about 0.8% this week, extending its losing streak to six weeks.