06.01.202603:42:26UTC+00Kiwi Dollar Rises for 4th Session

The New Zealand dollar appreciated to approximately $0.580, marking its fourth consecutive session of gains as global risk sentiment improved. Concerns over a potential wider geopolitical conflict eased following the United States' military action in Venezuela, lending support to this risk-sensitive currency. Additionally, a weaker US dollar amid a lackluster manufacturing report bolstered the Kiwi's advance. Investors are also evaluating the Reserve Bank of New Zealand's timing for potential interest rate hikes. Policymakers have highlighted that last year's 225 basis points of rate cuts likely concluded the easing cycle and have downplayed expectations for immediate rate increases. Governor Ann Breman has suggested that interest rates will likely remain unchanged for an extended period unless unexpected developments occur. Consequently, the markets are currently pricing in less than a 50% probability of a rate hike before September, with an increasing anticipation for action in October.