FX.co ★ New Zealand Dollar Hits Over 3-Week Low

The New Zealand dollar depreciated to approximately $0.588 on Friday, as it continued its losses for the third consecutive session, hitting its lowest point in over three weeks. The currency faced downward pressure due to the strengthening of the U.S. dollar, spurred by President Donald Trump's announcement of a trade agreement with the United Kingdom, which he characterized as "the first of many." Additionally, Trump expressed anticipation for substantive negotiations between the U.S. and China over the upcoming weekend. Domestically, the Kiwi faced further challenges due to market expectations of additional interest rate cuts by the Reserve Bank of New Zealand. Recent data highlighted a relaxation in labor market conditions and a decrease in wage growth, reinforcing the central bank's inclination towards monetary easing and suggesting a probable 25 basis point rate cut later this month. It is anticipated that rates will bottom out at 3.0% by the end of the year, with swaps indicating the possibility of three additional rate cuts within 2025. Over the week, the New Zealand dollar has declined by roughly 1%, marking its second consecutive week of losses.