NZD hit new lows. Overview for 19.04.2024

The New Zealand dollar, paired with the US dollar, is declining on Friday. The current NZDUSD exchange rate stands at 0.5882.

Investors are avoiding risks, which affects the New Zealand dollar, among other factors. The geopolitical factor in the Middle East currently plays a significant role as the primary market catalyst.

Moreover, the US Federal Reserve’s aggressive commentary pressured the NZD. Investors are considering that the Fed might not reduce interest rates this year. This situation strengthens the US dollar’s position and hurts other currencies.

This week, New Zealand released statistics indicating that inflation in Q1 dropped to 4% y/y, the lowest CPI value since summer 2021.

Meanwhile, the RBNZ’s official inflation forecast for Q1 remains at 3.8%.