The New Zealand dollar climbed toward $0.58 as the US dollar weakened after the Federal Reserve left interest rates unchanged, while a strong domestic business survey also lent support to the kiwi. The greenback lost ground after the Fed kept its benchmark rate on hold for a fifth straight meeting, despite ongoing inflation pressures and a recent surge in energy costs.
On the domestic front, the ANZ Business Confidence Index jumped to 56.1 in July from 36.6 in June, reflecting greater optimism among firms about the economic outlook. However, sentiment deteriorated toward the end of the month as renewed conflict in the Middle East fueled volatility in oil prices.
Markets continued to price in another cash rate increase by the Reserve Bank of New Zealand at its September meeting, following last week’s higher‑than‑expected inflation data.
