FX.co ★ New Zealand Dollar Weakens

The New Zealand dollar has dipped to approximately $0.565, surrendering some of the advances made last week, as predictions of an imminent interest rate cut by the Reserve Bank overshadow the recent US decision to reduce tariffs on New Zealand exports. Food prices have seen a decline for the second consecutive month, and the services sector continues to contract, reinforcing expectations for a 25 basis point rate cut later this month. Analysts suggest this could mark the end of the current easing cycle unless global economic conditions deteriorate further. Concurrently, President Donald Trump has lifted tariffs on over 200 food products in response to escalating grocery prices in the United States. These products represent roughly 25% of New Zealand’s exports to the US, and the tariff reduction is anticipated to bolster New Zealand’s export sector by enhancing market access, driving demand for key agricultural products, and improving the overall trade outlook.