New Zealand Dollar Extends Gains
The New Zealand dollar rose to $0.562 on Friday, extending its rebound from an 18-month low, as the US dollar weakened amid falling Treasury yields. The greenback’s decline came despite strong inflation and spending data, which reinforced expectations that the Federal Reserve could continue raising interest rates. Hawkish remarks from RBNZ Chief Economist Paul Conway on Thursday also supported the kiwi. Conway said the late-October rate decision remains completely open and that the central bank continues to believe that an increase in the OCR is most likely, although the timing remains uncertain. Market attention now turns to next week’s third-quarter inflation data, which could provide fresh insight into the central bank’s policy direction. The report will be the final major data release before the RBNZ’s meeting on October 28. The kiwi has risen 0.3% this week, putting it on track to snap a seven-week losing streak.
The New Zealand dollar rose to $0.562 on Friday, extending its rebound from an 18-month low, as the US dollar weakened amid falling Treasury yields. The greenback’s decline came despite strong inflation and spending data, which reinforced expectations that the Federal Reserve could continue raising interest rates. Hawkish remarks from RBNZ Chief Economist Paul Conway on Thursday also supported the kiwi. Conway said the late-October rate decision remains completely open and that the central bank continues to believe that an increase in the OCR is most likely, although the timing remains uncertain.
Market attention now turns to next week’s third-quarter inflation data, which could provide fresh insight into the central bank’s policy direction. The report will be the final major data release before the RBNZ’s meeting on October 28. The kiwi has risen 0.3% this week, putting it on track to snap a seven-week losing streak.