03.04.202503:52:09UTC+00Kiwi Dollar Rises Despite Trump’s Tariff

The New Zealand dollar advanced to approximately $0.574 on Thursday, marking its third consecutive session of growth, despite the country facing President Donald Trump's 10% baseline import tariff. This increase was supported by a weakening U.S. dollar, as Trump's broad-based new tariffs intensified trade tensions and raised concerns about a deceleration in economic growth. Among the affected nations, China experienced the largest tariff increase to date, with levies now reaching 54% on nearly all of its products. This situation could impose considerable downward pressure on the New Zealand dollar, considering that New Zealand's economy is substantially reliant on exports to China. Additionally, the currency encounters further downward pressure domestically, influenced by the Reserve Bank of New Zealand's dovish stance, which suggests the possibility of at least two interest rate reductions by the end of the year.