FX.co ★ New Zealand Dollar Weakens

The New Zealand dollar decreased to approximately $0.596 on Friday, positioning itself for a weekly downturn, following an unsatisfactory consumer confidence report. Consumer sentiment in New Zealand worsened in May due to tariff-related economic uncertainties and escalating food prices. Previous data also indicated that business confidence had slipped to a ten-month low, highlighting apprehensions regarding the country's economic prospects. In terms of monetary policy, the Reserve Bank of New Zealand reduced its official cash rate for the sixth consecutive time on Wednesday, suggesting there is potential for further cuts as it aims to protect the economy from trade-related uncertainties. On a global scale, attention remained on the ongoing legal dispute concerning President Donald Trump's "Liberation Day" tariffs, after a federal appeals court temporarily suspended a ruling that could have dismantled much of his tariff program. Despite these challenges, the Kiwi dollar has recorded a 0.5% increase so far this May, setting the stage for its third consecutive monthly increase.