New Zealand Dollar Holds Near Two-Month Low Amid Speculation of Interest Rate Cuts
The New Zealand dollar (NZD) stabilized around $0.604 on Wednesday but remained close to two-month lows as investors weighed the potential interest rate moves in both New Zealand and the United States. Traders are speculating that the Reserve Bank of New Zealand (RBNZ) may announce a 75-basis-point rate cut at its final meeting of the year in November, with a 50-basis-point cut already priced in. This would mark the central bank’s third rate cut in 2024.
Meanwhile, strong US economic data has lowered expectations for aggressive rate cuts by the Federal Reserve, boosting the US dollar. Investors are also closely monitoring the highly competitive US presidential election, which could influence market sentiment in the coming weeks.
