The New Zealand dollar weakened past $0.625 to its lowest levels in more than a week, as the currency failed to gain traction even after the Reserve Bank of New Zealand not only raised its policy rate by 50 bps to 3% but also signaled it wanted to get rates to a restrictive level of 4% before pausing. RBNZ Governor Adrian Orr also maintained that he does not expect a recession, and indicated confidence that the central bank was on top of inflation. The kiwi is now down about 3% so far this week, also facing pressure from weak data in major economies that reignited fears of a global recession and hawkish expectations from the US Federal Reserve.
Historically, the New Zealand Dollar reached an all time high of 1.49 in October of 1973. New Zealand Dollar - data, forecasts, historical chart - was last updated on August of 2022.
The New Zealand Dollar is expected to trade at 0.63 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.60 in 12 months time.