NZD remains under pressure. Overview for 06.03.2024

The New Zealand dollar maintains a weak position against the US dollar. The current NZDUSD exchange rate stands at 0.6095.

The Reserve Bank of New Zealand may cut interest rates sooner than planned, but only if the US Federal Reserve takes the first step.

According to the RBNZ’s chief economist, Paul Conway, the Central Bank may start cutting interest rates ahead of schedule if the Federal Reserve follows the same path; otherwise, the exchange rate could face significant pressure.

Earlier, the RBNZ stated that the interest rate would remain at the 5.5% level for a long time. No easing is expected until 2025. However, there are alternative views.

The main expectation suggests a reduction in the US Federal Reserve’s interest rate in June. Further reductions in the second half of the year are not ruled out.