The New Zealand dollar continued to weaken, slipping to around $0.584 on Friday, marking its third consecutive session of losses and reaching its lowest level in over a year.
NZ dollar falls to over one-year lows
The currency has been under pressure due to growing expectations of monetary easing by the Reserve Bank of New Zealand. Markets are fully anticipating a 50 basis point cut in the RBNZ’s cash rate to 4.25% at its meeting next week, matching the pace of the October reduction, with a 25% chance of an even larger 75 basis point cut also being priced in.
US dollar strengthens
Adding to the downward momentum, the Kiwi faced headwinds from a strengthening US dollar, which gained after an unexpected drop in US weekly jobless claims pointed to a resilient labor market, increasing speculation about a slower pace of Federal Reserve rate cuts. The New Zealand dollar is also poised for its seventh weekly decline in eight weeks.
