The New Zealand dollar probed a 52-week low around 0.6800 against the US dollar on Friday, as the new and possibly vaccine-resistant COVID variant detected in South Africa triggered a global sell-off in risk assets. The Kiwi has also been reeling from expectations of higher US interest rates amid recent hawkish signals from the Federal Reserve. The Reserve Bank of New Zealand meanwhile raised the Official Cash Rate by 25 basis points to 0.75%, in line with expectations but fell short of market speculations for a more aggressive 50 bps hike that analysts believed would be more supportive of the currency. Minutes of the meeting also showed that policymakers considered a faster pace of hikes, but chose to be cautious given the continuing pandemic and the very high levels of household debt.
Historically, the New Zealand Dollar reached an all time high of 1.49 in October of 1973. New Zealand Dollar - data, forecasts, historical chart - was last updated on November of 2021.
The New Zealand Dollar is expected to trade at 0.69 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.68 in 12 months time.