The New Zealand dollar climbed to around $0.606 on Thursday, extending its rally for a fifth consecutive day and hovering near its highest level since October 2024, driven by a broadly weaker US dollar and a rebound in global risk appetite.
The greenback retreated further amid rising expectations of Federal Reserve rate cuts, following reports suggesting that US President Donald Trump is considering announcing Fed Chair Jerome Powell’s replacement by September or October. Additionally, easing tensions in the Middle East — with the Israel-Iran ceasefire holding — boosted risk-sensitive currencies such as the kiwi. Meanwhile, investor focus is now shifting toward progress on trade negotiations ahead of the July 9 deadline for Trump’s reciprocal tariffs. In domestic news, New Zealand’s consumer confidence rose in June, though several components remain subdued and the index is still in pessimistic territory. For the week, the New Zealand dollar is on track to post a gain of more than 1%.
