The USD has strengthened in recent months. The economists at ANZ Bank analyze the prospects of the kiwi for the coming months.
When global risks are high, the NZD tends to be weaker
“Looking ahead, we expect to see continued volatility in the NZD as opposing forces impact its value.”
“If interest rates rise more in New Zealand than elsewhere, that will push our currency up.”
“Global risk remains a dominant factor influencing the value of our currency. In uncertain times, investors tend to favor the dollar, which is seen as a safe haven. Therefore, when global risks are elevated, the NZD tends to be weaker.”
“We currently expect the NZD to generally appreciate a bit over our forecast horizon, although it is still at the lower end of the ranges seen over the past decade.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
