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17.07.202504:04:36UTC+00New Zealand Dollar Remains Under Pressure

The New Zealand dollar depreciated to approximately $0.592 on Thursday, hovering near its lowest point in more than three weeks. This decline was influenced by a recovery in the US dollar, driven by President Donald Trump's dismissal of rumors that he might soon dismiss Federal Reserve Chair Jerome Powell, which helped alleviate market tensions. Investors are now turning their attention to the upcoming US retail sales data, expected later today, which could provide further insights into the health of the US economy and influence the Federal Reserve's future interest rate decisions. On the domestic front, the Reserve Bank of New Zealand recently halted its rate-cutting cycle, choosing to await a complete inflation report. Nonetheless, the bank has indicated the potential for further monetary easing, given the existing excess capacity in the economy. In other economic developments, New Zealand witnessed a rise in annual food inflation to 4.6% in June, up from 4.4% in May, marking the highest rate since December 2023.

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