New Zealand Dollar Extends Decline

2026-04-13 02:15 By Judith Sib-at 1 min. read

The New Zealand dollar fell to $0.582 on Monday, extending its retreat from a three-week high, as investor appetite for risk assets weakened after US-Iran talks failed and Washington moved toward restricting Iranian port traffic.

The US military announced it would begin a blockade of all Iranian ports at 1400 GMT on Monday, but will allow ships not traveling to or from Iran to pass through the Strait of Hormuz.

Meanwhile, the Reserve Bank of New Zealand kept its cash rate unchanged last week, while signaling a readiness to raise interest rates if core inflation accelerates amid rising fuel prices linked to the Middle East conflict.

Governor Anna Breman noted that although the central bank expects somewhat softer economic growth, medium-term inflation pressures remain a key concern.

She emphasized that if inflationary pressures build, the RBNZ would respond decisively with rate hikes.

Markets are currently pricing in more than an 80% probability of a rate increase as early as July.



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New Zealand Dollar Extends Decline
The New Zealand dollar fell to $0.582 on Monday, extending its retreat from a three-week high, as investor appetite for risk assets weakened after US-Iran talks failed and Washington moved toward restricting Iranian port traffic. The US military announced it would begin a blockade of all Iranian ports at 1400 GMT on Monday, but will allow ships not traveling to or from Iran to pass through the Strait of Hormuz. Meanwhile, the Reserve Bank of New Zealand kept its cash rate unchanged last week, while signaling a readiness to raise interest rates if core inflation accelerates amid rising fuel prices linked to the Middle East conflict. Governor Anna Breman noted that although the central bank expects somewhat softer economic growth, medium-term inflation pressures remain a key concern. She emphasized that if inflationary pressures build, the RBNZ would respond decisively with rate hikes. Markets are currently pricing in more than an 80% probability of a rate increase as early as July.
2026-04-13
New Zealand Dollar Hovers Near 2-Week Highs
The New Zealand dollar edged down to $0.584 but stayed close to its highest level in over two weeks, after the Reserve Bank signaled readiness to raise interest rates if core inflation accelerates. Governor Anna Breman noted that while the central bank expects somewhat weaker economic growth, medium-term inflation pressures remain a concern. She emphasized that if medium-term inflation begins to pick up, the RBNZ will act decisively and that means rate increases. The central bank held its cash rate steady at 2.25% for the second consecutive time on Wednesday, reaffirming its commitment to returning inflation to the midpoint of the 1-3% target range. Markets are currently pricing in more than an 80% probability of a rate hike as early as July, with expectations for rates to reach 3% by year-end. Meanwhile, investors remained cautious as the two-week ceasefire in the Middle East conflict looked in peril following Israeli strikes in Lebanon.
2026-04-09
New Zealand Dollar Rises After RBNZ Stands Pat
The New Zealand dollar rose more than 1% to around $0.582, hitting its highest level in two weeks, after the Reserve Bank kept its official cash rate steady at 2.25% as expected. The central bank adopted a cautious stance, noting that developments in the Middle East have significantly altered the outlook and the balance of risks for inflation. Near-term inflation is now expected to rise, while the economic recovery is projected to weaken. The RBNZ also indicated it is ready to hike rates if inflation pressures intensify as the war pushed fuel and transport costs higher. The currency also gained amid improved risk sentiment after the US and Iran agreed to a two-week ceasefire on Tuesday, less than two hours before President Trump’s ultimatum to obliterate Iran was set to expire, with Tehran agreeing to temporarily reopen the Strait of Hormuz.
2026-04-08