FX.co ★ New Zealand Dollar Rises for 3rd Day

The New Zealand dollar rose to $0.598 on Thursday, marking its third consecutive day of gains and reaching its highest level in over two weeks. This upward movement was driven by sustained weakness in the US dollar, which depreciated as markets increasingly anticipate Federal Reserve interest rate cuts this year. This sentiment followed a mild US Consumer Price Index (CPI) report on Tuesday and signs of a slowing labor market. Additionally, market optimism improved after President Trump recently extended the trade tariff truce with China by an additional 90 days. However, domestic challenges continue to affect the New Zealand dollar. The Reserve Bank of New Zealand is expected to cut its cash rate by 25 basis points, with another rate cut anticipated later this year or early next year. There are also ongoing concerns about the impact of US tariffs on New Zealand's export-dependent economy. Prime Minister Christopher Luxon acknowledged that it is unlikely New Zealand will secure a reduction in the existing 15% US tariff on its goods, which could adversely affect export competitiveness in the coming months.