FX.co ★ New Zealand Dollar Hits 2-Week Low

The New Zealand dollar dropped to approximately $0.604 on Monday, reaching a two-week low amid concerns over tariffs that pose a threat to the nation's export-reliant economy. President Donald Trump announced that his comprehensive reciprocal tariffs will be implemented on August 1st and reiterated that higher tariffs would target countries that fail to negotiate agreements. Treasury Secretary Scott Bessent supported this stance, stating that tariffs would revert to April 2nd levels for nations without an agreement. He also mentioned the possibility of an extension, suggesting that countries without a deal by Wednesday might receive an additional three weeks to continue negotiations. Domestically, the Reserve Bank is largely anticipated to maintain its cash rate at 3.25% this week, marking a pause after six consecutive rate cuts. Nevertheless, investors expect one or two additional 25-basis-point reductions later this year, given the downside risks to economic growth stemming from the impact of US tariffs.