14.11.202503:33:28UTC+00Kiwi Dollar Rises on Weaker Greenback

The New Zealand dollar experienced an uptick to $0.569 on Friday, buoyed by a weakening US dollar as attention turns to the forthcoming release of delayed US economic reports, following the conclusion of the country’s longest government shutdown. There is concern among investors that these reports may indicate a deceleration in the US economy, potentially justifying a Federal Reserve interest rate cut. Additionally, the New Zealand currency was bolstered by data revealing that the country's manufacturing sector expanded for the fourth consecutive month in October, driven by increasing new orders and heightened demand. However, the potential for further gains in the currency remains constrained by anticipations of a rate reduction by the Reserve Bank of New Zealand later this month, expectations that are underscored by weak employment figures and a muted inflation outlook. The markets are primarily factoring in a 25 basis points rate decrease, with a 10% probability of a more substantial 50bps adjustment. Despite the challenges, the New Zealand dollar has climbed over 1% this week, ready to break a two-week losing streak.