New Zealand Dollar Struggles Near 11-Month Low

The New Zealand dollar steadied around $0.560 after slipping below the level to a fresh low since November 2025 in the previous session. The currency found limited support from data showing business confidence improved in the third quarter, with a net 43% of firms expecting general business conditions to improve in the coming months, up from a net 8% in the previous quarter, despite higher fuel prices and persistent geopolitical risks. However, a stronger US dollar amid elevated Treasury yields continued to weigh on the kiwi. Uncertainty ahead of the November general election has also added to the headwinds. Currently, markets are pricing in around a 58% chance of a 25-basis-point rate hike to 3.0% by the Reserve Bank of New Zealand later this month, while a December move remains more than fully priced in.