FX.co ★ New Zealand Dollar Remains Subdued

The New Zealand dollar slipped to around $0.559, hovering near its weakest level since November 2025, as persistent US dollar strength continued to weigh on the currency. The greenback advanced despite a softer US jobs report on Friday, which dampened expectations of a Federal Reserve rate hike later this month. At the same time, elevated energy prices are posing a threat to New Zealand’s already fragile economy, reflecting the country’s heavy dependence on imported energy. The recent surge in oil prices has heightened upside risks to inflation and strengthened the case for additional rate hikes by the Reserve Bank of New Zealand, but it is also eroding household purchasing power and driving up business operating costs, potentially undermining domestic demand. Political uncertainty ahead of the November general election has further exacerbated pressure on the currency.