The USD to FJD exchange rate is currently range-bound.
Key drivers include:
- The Federal Reserve's anticipated interest rate cuts could weaken the USD, while Fiji's stable overnight policy rate supports the FJD.
- Improving global growth may enhance demand for Fijian exports, although US tariffs remain a concern.
- Fiji's economic growth is projected to slow, but the FJD has shown relative stability amid global volatility.
The exchange rate is expected to trade within a stable range over the next few months, consistent with its recent 2.1% fluctuation. An upside risk could emerge if Fiji successfully diversifies its export markets, while a downside risk could present itself if the USD weakens significantly due to aggressive rate cuts.