FX.co ★ New Zealand Dollar Extends Gains

The New Zealand dollar climbed above $0.60 on Thursday, marking a third straight session of gains as it benefited from a weaker US dollar. The greenback came under pressure amid renewed uncertainty over US trade policy, after President Trump reiterated his determination to impose tariffs following the Supreme Court’s decision to block many of his broad-based levies.

Upside for the kiwi remained constrained, however, by fading expectations of near-term policy tightening from the Reserve Bank of New Zealand. Last week, Governor Anna Breman said the economy has room to recover this year without stoking inflationary pressures, indicating less urgency for an imminent rate hike. Her comments followed the RBNZ’s decision to leave its cash rate unchanged and to stress the importance of maintaining an accommodative policy stance. Markets now assign only a small probability to a first rate increase before December.