New Zealand Dollar Hits Near 7-Month Peak

2026-01-28 03:31 By Judith Sib-at 1 min. read

The New Zealand dollar climbed to $0.608, its highest since early July 2025, amid expectations of tighter monetary policy.

Data last week showed fourth-quarter consumer inflation rose more than expected and was above the Reserve Bank’s target range, reinforcing the view that interest rates may need to move higher later this year.

Governor Anna Breman also refrained from pushing back against bets of a rate increase this year, a shift from her earlier tone, when she had downplayed the likelihood of a near-term hike.

Meanwhile, Finance Minister Nicola Willis said the inflation data was a “blip,” but acknowledged that the central bank would eventually need to begin raising interest rates.

The RBNZ is expected to stand pat at its February meeting, though markets are pricing in a high probability of a hike by September.

Adding to the kiwi's gains, New Zealand's trade surplus widened to NZ$52 million in December from NZ$36 million in the same month of 2024, above forecasts of NZ$30 million.



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