The New Zealand dollar weakened to around $0.576, hovering near a two-week low, as investors assessed the Reserve Bank of New Zealand’s policy outlook. The central bank has signalled that its easing cycle likely ended last year after delivering a cumulative 225 basis points of rate cuts, while also pushing back against expectations of a near-term rate hike. This follows recent comments from Governor Ann Breman indicating that rates are likely to remain on hold for an extended period, barring unexpected economic developments. As a result, market pricing for a rate increase before September has faded, with less than a 50% chance now assigned to that meeting, while an October move is seen as increasingly likely. Adding to downward pressure was broadly dampened sentiment after renewed geopolitical tensions, triggered by US strikes on Venezuela, unsettled global markets.
