FX.co ★ New Zealand Dollar Holds Decline

The New Zealand dollar hovered around $0.585 after two straight sessions of modest declines, as markets reassessed the Reserve Bank of New Zealand’s interest rate outlook. The kiwi remained under pressure following the RBNZ’s dovish rate hike last week, while recent comments from policymakers signaled a more cautious stance on further tightening, with some expressing growing concern about economic growth. Current market pricing suggests roughly an 80% probability that the central bank will keep rates on hold in October, although a December hike is still largely expected. The kiwi also traded near a 13-year low against the Australian dollar, reflecting diverging monetary policy paths between the two countries, even as both currencies drew some support from a weaker US dollar.