FX.co ★ New Zealand Dollar Extends Gains

The New Zealand dollar advanced to approximately $0.578 on Friday, achieving its third consecutive session of gains. This upward movement was primarily influenced by a weakening U.S. dollar amidst growing economic concerns stemming from increased tariff tensions. Although President Trump granted most countries a 90-day delay before implementing reciprocal tariffs, he significantly raised tariffs on Chinese imports to 145%. This action intensified fears that Beijing might escalate its retaliatory tariffs beyond the existing 84%, which also sparked concerns for New Zealand due to its significant trade relationships with China. On the domestic front, the Reserve Bank of New Zealand (RBNZ) recently reduced its official cash rate by 25 basis points to 3.5%, as anticipated, highlighting a consistent decline in inflation and a weakening domestic economy. In other economic developments, the BusinessNZ Performance of Manufacturing Index (PMI) revealed a decrease in the country's manufacturing activity in March, with a reading of 53.2 compared to 54.1 in February. Nonetheless, the sector remained in expansion for the third consecutive month. Over the week, the New Zealand dollar has risen more than 3%, poised for its first weekly gain in four weeks.