New Zealand Dollar Remains Under Pressure

2026-09-24 02:32 By Judith Sib-at 1 min. read

The New Zealand dollar held around $0.567 on Thursday, hovering at an eleven-week low, as a robust US dollar keeps pressure on the kiwi.

The greenback reached its strongest level in nearly two months, as stronger-than-expected PMI data fuelled concerns over inflation and strengthened expectations for more interest-rate hikes.

Even before the release, several Fed officials had voiced broader concerns about persistent inflation risks, saying that rate increases are likely needed.

The hawkish Fed outlook overshadowed rising expectations for further tightening by the Reserve Bank of New Zealand.

Markets are now pricing in an 87% chance of a third hike in October, up sharply from 20% earlier this month, following Governor Anna Breman’s warning that sustained oil price increases could push near-term inflation above the central bank’s latest forecast.

However, her emphasis on an uneven economic recovery underscored the challenge of balancing inflation risks with still-fragile domestic growth.



News Stream
New Zealand Dollar Remains Under Pressure
The New Zealand dollar held around $0.567 on Thursday, hovering at an eleven-week low, as a robust US dollar keeps pressure on the kiwi. The greenback reached its strongest level in nearly two months, as stronger-than-expected PMI data fuelled concerns over inflation and strengthened expectations for more interest-rate hikes. Even before the release, several Fed officials had voiced broader concerns about persistent inflation risks, saying that rate increases are likely needed. The hawkish Fed outlook overshadowed rising expectations for further tightening by the Reserve Bank of New Zealand. Markets are now pricing in an 87% chance of a third hike in October, up sharply from 20% earlier this month, following Governor Anna Breman’s warning that sustained oil price increases could push near-term inflation above the central bank’s latest forecast. However, her emphasis on an uneven economic recovery underscored the challenge of balancing inflation risks with still-fragile domestic growth.
2026-09-24
New Zealand Dollar Dips to 11-Week Low
The New Zealand dollar fell to $0.570 on Wednesday, erasing the previous session’s gains to hit an eleven-week low, as the US dollar strengthened amid hawkish Federal Reserve rhetoric. Richmond Fed President Tom Barkin warned that inflationary shocks could take time to fade. His comments followed those of other Fed officials who have broadened their concerns about persistent inflation, reinforcing the case for further policy tightening. This outweighed growing expectations on additional interest rate hike by the Reserve Bank of New Zealand. Markets have increased bets on a third rate hike to 3.0% at the RBNZ’s October meeting to 75%, after Governor Anna Breman warned that persistent increases in oil prices could push near-term inflation somewhat above the central bank’s latest forecast. However, her emphasis on an uneven economic recovery underscored the challenge of balancing inflation risks with still-fragile domestic growth.
2026-09-23
Kiwi Dollar Rebounds as RBNZ Flags Inflation Risks
The New Zealand dollar rose to around $0.574 on Tuesday, rebounding from an over ten-week low, after Reserve Bank Governor Anna Breman cautioned that near-term inflation could be somewhat higher than the bank's latest forecast if recent increases in oil prices persist. She also noted that while the economy was showing signs of growth, the recovery remains uneven across the country. Her remarks led markets to raise bets on a third hike to 3.0% next month to 75% from 60% a day prior, with four hikes now priced in by the second half of next year. The central bank raised its cash rate earlier this month but signalled that further tightening would be gradual. Limiting the kiwi's upside, the US dollar remained firm amid hawkish Federal Reserve commentary. Meanwhile, traders await the US-China summit this week for signs of progress on trade, with any positive developments potentially improving risk appetite and supporting the kiwi, given New Zealand's strong trade ties with China.
2026-09-22