FX.co ★ New Zealand Dollar Hits Over 2-Week High

The New Zealand dollar climbed to approximately $0.605 on Thursday, marking its highest point in over two weeks. This rise was bolstered by a declining US dollar and a favorable shift in global risk appetite due to advancements in trade negotiations between the US and prominent partners. Reports indicate that the EU and the US are nearing a consensus on imposing a 15% tariff on most imports from the EU, mirroring a recent agreement with Japan. Domestically, Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway noted on Thursday that tariffs might impact the global economy and suppress demand, emphasizing that New Zealand will remain vigilant in monitoring new economic data. The current market sentiment suggests an 80% likelihood of a 25 basis point reduction in August, following unexpectedly weak Q2 Consumer Price Index figures and a significant reduction in the trade surplus. Nevertheless, there is a growing belief among investors that the RBNZ may be nearing the conclusion of its current monetary easing phase.