New Zealand Dollar weakens below 0.5900 as Unemployment Rate jumps to highest since 2015
The NZD/USD pair weakens to near 0.5870 during the early European trading hours on Wednesday. The New Zealand Dollar attracts some sellers against the US Dollar (USD) after New Zealand’s unemployment rate climbs to the highest in 11 years.
The New Zealand Dollar (NZD) weakened below 0.5900 against the US Dollar (USD) in early European trading hours on Wednesday. The decline came as New Zealand's unemployment rate surged to 5.6% in the second quarter (Q2) of 2026, surpassing the previously expected 5.4%. Statistics New Zealand reported the figure on Wednesday, which marked a significant increase from 5.3% in Q1.
This jobless rate surge has cast doubt on the need for aggressive rate hikes by the Reserve Bank of New Zealand (RBNZ), weakening the Kiwi. Hopes for a breakthrough in the US-Iran talks and the potential interim deal to reopen the Strait of Hormuz may help mitigate the NZD's losses. US President Donald Trump reported productive talks with Iran on Wednesday, while speculations of an interim deal to reopen the critical waterway were circulating.
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