FX.co ★ New Zealand Dollar Languishes Near Multi-Month Lows

The New Zealand dollar held near $0.561, hovering around its weakest level since November 2025, and was headed for its longest run of weekly declines since early 2025. The kiwi has come under pressure from a stronger US dollar and a sharp rise in oil prices, developments that threaten New Zealand’s fragile economic recovery. Higher energy costs are stoking inflation and shoring up expectations of further interest rate hikes by the Reserve Bank of New Zealand. At the same time, they are squeezing household purchasing power and pushing up business costs, which could dampen domestic demand and growth. Adding to the currency’s headwinds is heightened political uncertainty in the run-up to November’s general election. For the week, the kiwi was down about 0.8%, extending its losing streak to six consecutive weeks.