Bullish NZ dollar forecasts were all surpassed last year with the NZD hitting US71c by year-end. So far in 2021 the kiwi has traded in a band between US71c and US72c.
In mid-October the NZ dollar surged to US71¢ on the news from Statistics NZ that quarterly CPI rose 2.2 per cent and annual inflation accelerated to 4.9 per cent. The uptick in the NZD comes from expectations the RBNZ may raise interest rates more than and sooner than expected.
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The Reserve Bank of New Zealand’s anticipated August rate hike was deferred on the early detection of a Delta variant outbreak.
This, as well as rising US inflation predictions, has added downward pressure on the NZD through to October, with the currency touching YTD lows nearing 0.68 against USD.
Whether the NZ dollar will rise or drop in the future is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s current relative value is to look at the rate’s history against a range of currencies and in particular against the currency you are interested in exchanging it with.
Forecasts for the New Zealand dollar change all the time, affected by news events and relative sentiment towards the New Zealand economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of NZD in the currency markets.
You can also read our full Foreign Exchange Guide to New Zealand.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.