The New Zealand dollar dropped to around $0.583 on Tuesday, retreating to its lowest level in over a year after giving back gains from the previous session.
New Zealand dollar slips to year-low
The decline was driven by a stronger US dollar following President-elect Donald Trump's reaffirmation of tariff policies. Investors are particularly concerned about Trump's plan to impose an additional 10% tariff on all Chinese goods, which raises concerns for China—New Zealand's largest trading partner.
Focus on RBNZ moves
Domestically, the Kiwi was also pressured by the Reserve Bank of New Zealand’s accommodative monetary policy stance. The RBNZ is expected to announce a 50-basis-point cut in the cash rate to 4.25% on Wednesday, in line with October's rate reduction.
