FX.co ★ New Zealand Dollar Marches Toward 7-Month High

The New Zealand dollar ascended to approximately $0.602 on Monday, building on Friday's 1.5% increase and nearing levels last seen seven months prior. This upbeat performance was primarily attributed to a widespread depreciation of the US dollar, triggered by renewed trade tensions and heightened concerns regarding the US fiscal outlook. Last Friday, President Donald Trump threatened to impose a 50% tariff on all EU goods and a 25% tariff on Apple products if the company continues its overseas iPhone manufacturing. Nevertheless, tensions eased somewhat when Trump announced on Sunday that he would extend the deadline for tariff negotiations with the EU until July 9. On the domestic front, traders are turning their attention to the Reserve Bank of New Zealand's policy meeting on Wednesday, with the central bank expected to cut the cash rate by 25 basis points amid persistently low inflation. The markets currently anticipate that interest rates will decrease to around 3% or 2.75% by year-end.