FX.co ★ New Zealand Dollar Rises on Weaker Greenback

On Friday, the New Zealand dollar strengthened to $0.586, buoyed by a generally weaker US dollar in advance of the eagerly awaited US non-farm payrolls report scheduled for later in the day. This report is expected to be a focal point for analysts, as it may impact the Federal Reserve's forthcoming policy decision. Traders are largely anticipating a reduction in interest rates by the end of the month. On the domestic front, however, prospects of additional monetary easing by the Reserve Bank of New Zealand (RBNZ) continued to cap the currency's gains. Financial markets are factoring in a rate cut at the RBNZ's upcoming meeting in October, with interest rates projected to drop to approximately 2.50% by early next year. The New Zealand dollar has faced pressures since the RBNZ decreased its official cash rate to 3.0% last month and indicated the possibility of further cuts to invigorate a lagging economy. Although Friday's increase offered some relief, the New Zealand dollar remains down by 0.6% for the week, highlighting the ongoing tension between global influences and domestic challenges.