The New Zealand dollar recently traded at approximately $0.581, retreating from a three-month peak as investors assessed the potential timing of interest rate hikes by the Reserve Bank of New Zealand. The central bank has indicated that interest rates are expected to remain unchanged for an extended period, thus dampening expectations for an imminent rate increase. This perspective, however, faced a challenge from the latest GDP figures, which indicated a recovery in the third quarter, reinforcing evidence of economic strength following a sustained phase of weakness. Consequently, market speculations envisage about a 45% probability of a rate hike by July, with a hike being fully anticipated by October. Concurrently, a weaker US dollar offered some support to the New Zealand dollar, as markets continued to anticipate further rate cuts by the Federal Reserve in the coming year. The New Zealand currency is heading for its most successful month since June and is projected to achieve an annual increase of nearly 4%, breaking a four-year trend of declines.