08.08.202502:51:07UTC+00New Zealand Dollar Holds at 1-Week High

The New Zealand dollar remained stable at $0.596 on Friday, maintaining its position near a one-week high, bolstered by a weakening US dollar. The US currency faced downward pressure due to increasing speculations regarding a potential interest rate cut by the Federal Reserve in September and apprehensions about the economic impact of newly imposed tariffs. The New Zealand dollar, often referred to as the kiwi, received further support from robust trade figures out of China—New Zealand's largest trade partner—which revealed that export growth exceeded expectations in July. This development provided a measure of relief amidst a delicate tariff ceasefire between Beijing and Washington. On the domestic front, however, positive sentiment was dampened by recent labor market statistics indicating ongoing frailty, thereby heightening predictions that the Reserve Bank of New Zealand might opt for an interest rate reduction in its upcoming meeting. Compounding these challenges, a new 15% US tariff on New Zealand exports was implemented on Thursday, introducing additional risks to the nation’s export-dependent economy. Over the course of the week, the New Zealand dollar saw a 0.8% increase.