FX.co ★ New Zealand Dollar Hovers Near 1-Month High

The New Zealand dollar inched up to $0.569, hovering near a one-month high, as expectations of further monetary tightening by the Reserve Bank of New Zealand (RBNZ) underpinned the currency. While inflation eased slightly more than anticipated in the third quarter, analysts expect price pressures to re-accelerate, with inflation potentially rising well above 4% in the fourth quarter and remaining outside the RBNZ’s 1–3% target band for longer than previously thought. This outlook has been reinforced by higher energy prices amid escalating tensions in the Middle East. Markets are now almost fully pricing in a third rate increase next week, which would lift the Official Cash Rate (OCR) to 3.0%. Looking ahead, some economists forecast the OCR to reach 3.75% by the first quarter of next year or to peak at 4% in the second half of 2027. The kiwi has risen 0.7% so far this week, on track for its second straight weekly gain.