New Zealand Dollar Hits Near 1-Year Low

The New Zealand dollar depreciated past $0.58, hitting its lowest levels in nearly a year, weighed down mainly by a rally in the US dollar and Treasury yields as stronger-than-expected US economic data supported a hawkish view on Federal Reserve monetary policy.

Geopolitical risks in the Middle East and economic uncertainties in other major economies also prompted traders to avoid riskier assets.

Moreover, the Kiwi was pressured by easing domestic inflation that lessened that chance of another interest rate hike from the Reserve Bank of New Zealand.

The country's headline inflation hit a 2-year low of 5.6% in the September quarter, slowing for the third straight quarter following a total of 525 basis points of rate hikes since October 2021.