22.12.202503:15:26UTC+00New Zealand Dollar Rises

The New Zealand dollar saw an increase to approximately $0.577, recovering from losses after reaching a two-week low in the prior session. This shift occurred as investors reevaluated the Reserve Bank's monetary policy outlook. Data from the previous week indicated that New Zealand's economy experienced growth in the third quarter, marking initial signs of improved momentum after a lengthy period of sluggishness. This development further diminished the already low probability of a rate cut. Nonetheless, the recuperation remains precarious, with advancements primarily fueled by the primary sector rather than widespread domestic demand. Given the persistent slack within the economy, this growth is considered non-inflationary in the near term. Consequently, expectations for interest rate hikes have declined, with markets now indicating a 40% likelihood of an adjustment by July, down from 50%. This follows statements from RBNZ Governor Anna Breman, who projected that interest rates would remain steady through 2026. The New Zealand dollar is anticipated to achieve an annual gain exceeding 3% in 2025.