FX.co ★ New Zealand Dollar Remains Near 3-Month High

The New Zealand dollar slipped to around $0.596 on Monday but remained near a three‑month high, as markets ramped up bets on further interest rate increases. Reserve Bank of New Zealand Governor Anna Breman stated on Friday that rates are likely to rise earlier and more sharply than previously signaled in order to contain inflation.

Her remarks followed the central bank’s decision to leave the official cash rate (OCR) unchanged at 2.25%, while updated forecasts indicated two 25‑basis‑point hikes before the end of the year. Market pricing now suggests an 80% chance of a rate rise in July, with expectations that the OCR could reach 3.0% by year‑end and potentially peak at around 3.50%.

At the same time, broader market sentiment was cautious, as investors awaited US President Donald Trump’s decision on a proposed agreement to extend the ceasefire with Iran.