NZ Dollar Drops Amid Rate Hike Speculation
Solid ECN - The New Zealand dollar dropped to approximately $0.612, losing some of its recent gains as investors became wary before an upcoming speech by the central bank, which might impact future interest rate decisions. Adrian Orr, the Governor of the Reserve Bank of New Zealand, is set to speak on Friday. Last week, the Kiwi saw a 1.4% increase amid thoughts that interest rates might increase due to persistent inflation and a strong job market.
ANZ analysts predict the Reserve Bank of New Zealand will raise interest rates by a quarter point in February and April, bringing the policy rate to 6%. Investors also note a worldwide trend among major central banks to delay expected rate reductions, particularly in the US and Europe. According to traders, there's about a 44% probability that the RBNZ will hike rates on February 28.