New Zealand Dollar falls toward 0.5650 despite rising RBNZ rate hike bets
NZD/USD declines to around 0.5650 at the time of writing on Tuesday, down 0.25% on the day, and remains close to its lowest level since late June.
The New Zealand Dollar (NZD) has slipped to around 0.5650 against the US Dollar (USD) on Tuesday, slipping 0.25% for the day and nearing its lowest point since late June. Tensions between the US and Iran are fueling demand for the US Dollar, while the Reserve Bank of New Zealand (RBNZ) is expected to raise interest rates again, supporting the NZD.
Recent geopolitical developments, such as talks between Iranian Foreign Minister Abbas Araghchi and Qatari mediators, and the US President's rejection of an Iranian proposal to reopen the Strait of Hormuz, have contributed to this. Market sentiment suggests an 80% chance of an RBNZ rate hike at their October 28 meeting, bolstered by strong second-quarter growth data and warnings of higher Crude Oil prices potentially pushing inflation above central bank forecasts.
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