FX.co ★ Kiwi Dollar Pressured by RBNZ Rate Cut Bets

The New Zealand dollar has depreciated to $0.563, remaining close to a seven-month low, as anticipation builds regarding another interest rate cut by the Reserve Bank next week. Financial markets have fully anticipated a 25 basis point reduction, spurred by a series of lackluster economic indicators underscoring the necessity for additional policy stimulus. Additionally, newly released data indicates that producer prices increased less than anticipated in the third quarter, suggesting a reduction in pricing pressures. Nevertheless, analysts have observed that this forthcoming rate cut may mark the conclusion of the current easing cycle, unless there is a significant global economic downturn. Concurrently, President Donald Trump recently removed tariffs on over 200 food products in reaction to escalating grocery prices in the United States. This adjustment affects about 25% of New Zealand's exports to the U.S., a development expected to bolster the country's export sector.