The New Zealand dollar fell for the second consecutive day

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Daily Economic  – On Tuesday, the New Zealand dollar (NZD) fell to around US$0.592, extending its decline from the previous trading day. Weak risk sentiment offset support from expectations of an interest rate hike.

Investors remained cautious due to uncertainty surrounding a Middle East peace agreement. Conflicting signals from the US and Iran, coupled with renewed tensions near the Strait of Hormuz, raised concerns about potentially prolonged geopolitical and trade disruptions.

However, hawkish signals from the Reserve Bank of New Zealand, leading to market expectations of monetary policy tightening, somewhat mitigated the decline.

Currently, the market widely expects an approximately 80% probability of an interest rate hike by the Reserve Bank of New Zealand in July, with a cumulative increase of about 75 basis points for the year, equivalent to three rate hikes of 0.25 basis points each.

The latest exchange rate for 100 New Zealand dollars against the Chinese yuan was 403.27 yuan.