New Zealand Dollar Holds Decline

2026-07-24 02:19 By Judith Sib-at 1 min. read

The New Zealand dollar steadied at $0.577 but held most of its losses from the previous sessions, as escalating tensions between the US and Iran dampened risk appetite.

The US carried out more strikes on Tehran, with President Donald Trump threatening to intensify the conflict with Iran following Houthi militants' attacks on two Saudi Arabian oil tankers in the Red Sea.

While the conflict has heightened inflation concerns amid rising oil prices, it has also increased downside risks to the economy, as New Zealand is heavily dependent on oil imports from the Middle East, leaving the currency vulnerable to supply disruptions and higher energy costs.

Still, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September following hot inflation data, with rates projected to reach at least 3.0% by year-end and peak at 3.5% around the middle of next year.

The kiwi has fallen around 1% so far this week, its first weekly decline in four.



News Stream
New Zealand Dollar Holds Decline
The New Zealand dollar steadied at $0.577 but held most of its losses from the previous sessions, as escalating tensions between the US and Iran dampened risk appetite. The US carried out more strikes on Tehran, with President Donald Trump threatening to intensify the conflict with Iran following Houthi militants' attacks on two Saudi Arabian oil tankers in the Red Sea. While the conflict has heightened inflation concerns amid rising oil prices, it has also increased downside risks to the economy, as New Zealand is heavily dependent on oil imports from the Middle East, leaving the currency vulnerable to supply disruptions and higher energy costs. Still, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September following hot inflation data, with rates projected to reach at least 3.0% by year-end and peak at 3.5% around the middle of next year. The kiwi has fallen around 1% so far this week, its first weekly decline in four.
2026-07-24
New Zealand Dollar Drops Further
The New Zealand dollar fell to around $0.579, extending its decline as traders assessed the impact of persistent Middle East tensions on the country's inflation outlook and broader economic prospects. The US and Iran continued to exchange strikes, while Yemen’s Houthi militants said they had attacked two Saudi Arabian tankers in the Red Sea, driving oil prices sharply higher. While the conflict has heightened inflation concerns, it has also put downside risks on the economy, as New Zealand remains heavily dependent on oil imports from the Middle East, leaving the kiwi vulnerable to supply disruptions and higher energy costs. Still, the Reserve Bank of New Zealand is widely expected to deliver another 25-basis-point rate hike in September following higher-than-expected inflation in the second quarter, with rates seen reaching at least 3.0% by year-end and peak at 3.5% around the middle of next year.
2026-07-23
New Zealand Dollar Holds Near 6-Week High
The New Zealand dollar steadied at 0.582, remaining near a six-week high, supported by growing expectations of further interest rate increases following a hot inflation reading. New Zealand’s annual inflation accelerated to 4.1% in Q2 from 3.1% in Q1, exceeding both market forecasts of 4% and the RBNZ's projection of 3.9%. It marked the highest level since Q4 2023 and pushed inflation further above the central bank’s 1–3% target range. The hot print solidified wagers that the central bank will deliver another 25-basis-point rate hike in September, with swaps also implying additional increases in either October or December, followed by another move in February next year. Last week, RBNZ Chief Economist Paul Conway said that Middle East-driven inflation risks to the third quarter outlook have increased, and that some further reduction in monetary stimulus is likely to be needed.
2026-07-22