FX.co ★ New Zealand Dollar Hovers Near 6-Month Low

The New Zealand dollar rose to $0.572 on Wednesday, though it hovered near a six-month low as investors considered comments from Reserve Bank of New Zealand's Chief Economist, Paul Conway. Conway indicated that the RBNZ is open to the possibility of further interest rate cuts if needed, though policymakers prefer to review additional data before making decisions. Despite this, he remarked that the central bank is unlikely to resort to additional monetary policy instruments in the near future and cautioned against relying solely on monetary or fiscal strategies to counteract every economic disruption. Nonetheless, the market is currently estimating an approximately 85% likelihood that the RBNZ will reduce rates by 25 basis points in its November meeting, with some analysts predicting a reduction to 2.0%. Additionally, escalating tensions between the US and China have introduced new uncertainties into global markets, reducing risk appetite and exerting pressure on the trade-sensitive New Zealand dollar.