New Zealand Dollar Snaps 2-day Gain

2026-04-28 07:51 By Judith Sib-at 1 min. read

The New Zealand dollar fell to $0.588, snapping a two-day winning streak, amid reports that President Trump was dissatisfied with Iran’s latest proposal, dampening hopes for a breakthrough in efforts to reopen the Strait of Hormuz.

The proposal includes reopening the strait in exchange for the US lifting its blockade on Iranian ports, while talks over Tehran’s nuclear program would be deferred to a later stage.

Traders also await the Federal Reserve’s policy decision, where the bank is widely anticipated to leave interest rates unchanged.

On the domestic policy front, markets are pricing in more than a 60% chance of a rate hike from the Reserve Bank of New Zealand in May following a hot inflation report for the first quarter, with price pressures expected to intensify further in the second quarter as the full impact of higher energy costs feeds into the data.

However, there remains some caution, as the Middle East conflict threatened to derail the country’s fragile economic recovery.



News Stream
New Zealand Dollar Snaps 2-day Gain
The New Zealand dollar fell to $0.588, snapping a two-day winning streak, amid reports that President Trump was dissatisfied with Iran’s latest proposal, dampening hopes for a breakthrough in efforts to reopen the Strait of Hormuz. The proposal includes reopening the strait in exchange for the US lifting its blockade on Iranian ports, while talks over Tehran’s nuclear program would be deferred to a later stage. Traders also await the Federal Reserve’s policy decision, where the bank is widely anticipated to leave interest rates unchanged. On the domestic policy front, markets are pricing in more than a 60% chance of a rate hike from the Reserve Bank of New Zealand in May following a hot inflation report for the first quarter, with price pressures expected to intensify further in the second quarter as the full impact of higher energy costs feeds into the data. However, there remains some caution, as the Middle East conflict threatened to derail the country’s fragile economic recovery.
2026-04-28
New Zealand Dollar Strengthens
The New Zealand dollar climbed to $0.591 on Monday, extending gains from the previous session, amid renewed hopes for an end to the Middle East conflict. Reports indicated that Iran had submitted a new proposal to the US to reopen the Strait of Hormuz and end the war, while delaying discussions on its nuclear program. This followed the collapse of planned peace talks in Pakistan over the weekend, after delegations from both sides withdrew. Meanwhile, last week’s data showed inflation in New Zealand came in higher than forecasts. Price pressures are now expected to intensify further in the second quarter when the full impact of higher energy costs feeds into the data, strengthening expectations that the RBNZ may begin raising interest rates in the coming months. Still, some caution remains, as the Middle East conflict threatened to derail the country’s fragile economic recovery. Traders now see around a 60% chance of a 25bps rate hike in May, with a move in July fully priced in.
2026-04-27
New Zealand Dollar Holds Losses
The New Zealand dollar held its recent decline around $0.585 on Friday, as geopolitical uncertainty kept traders cautious. Prospects of continued US-Iran peace talks appeared uncertain despite an extension to a fragile ceasefire. Iran vowed it would not reopen the Strait of Hormuz while the US has maintained a blockade on vessels traveling to and from Iranian ports. On the policy front, investors increased bets that the Reserve Bank of New Zealand will raise the cash rate by 25 basis points in May following a hot inflation report for the first quarter. Inflationary pressures are also expected to intensify further in the second quarter as the full impact of higher energy costs feeds through to the data. The RBNZ has recently warned that it would act decisively if inflation accelerates. However, many analysts still expect policymakers to keep rates unchanged in the near term, as the Middle East conflict threatens to undermine the country’s fragile economic recovery.
2026-04-24