FX.co ★ New Zealand Dollar Languishes Near 7-Month Low

The New Zealand dollar edged down to $0.566 on the first trading day of July, hovering near a seven‑month low as the US dollar remained firm and investors reassessed the Reserve Bank of New Zealand’s (RBNZ) interest rate outlook. Markets are still pricing in a rate hike from the RBNZ next week, though analysts are increasingly split on whether such a move is warranted in light of the recent fall in oil prices.

Recent data showed an improvement in business confidence in June, indicating the economy may be holding up better than previously feared. While local economists still expect a contraction in the second quarter, they foresee a subsequent recovery as fuel and other input costs decline.

The kiwi lost 5.2% in June, its steepest monthly decline since December 2024, and fell 1.2% over the second quarter.