FX.co ★ New Zealand Dollar Falls to 2-1/2 Month Low

On Friday, the New Zealand dollar slid to $0.587, marking its seventh straight session of declines and reaching its lowest point since mid-May. This downturn follows the decision to increase US tariffs on New Zealand from 10% to 15%, a change first announced in April and set to take effect today. These heightened tariffs have sparked concerns regarding the prospects of New Zealand's export-reliant economy. This pressure is compounded by a generally strong US dollar, supported by a hawkish stance from the Federal Reserve and continuous indications of strength in the US economy. Investors are now focusing on the forthcoming release of US non-farm payroll data, which could provide further insight into the Federal Reserve's future interest rate decisions. On the domestic front, New Zealand has witnessed a decline in consumer confidence in July, driven by rising inflation expectations. As it stands, the New Zealand dollar has depreciated by over 2% this week.