The New Zealand dollar (NZD) has recently experienced a decline against the Fijian dollar (FJD), trading around 90-day lows at approximately 1.2971 FJD. Analysts noted that this marks a 1.9% drop from the three-month average of 1.3219 FJD, within a stable range of 4.1% between 1.2971 and 1.3499 FJD.
Recent developments suggest that the NZD’s performance is heavily influenced by a declining risk appetite among investors, despite some positive domestic news, such as an annual inflation rate reaching 3% in Q3 2025 and the Reserve Bank of New Zealand (RBNZ) cutting the official cash rate by 50 basis points to 2.5% in response to economic challenges. Experts believe that these monetary policy changes aim to stimulate the economy as inflation pressures mount. However, if risk aversion continues in global markets, this could lead to a further weakening of the NZD.
In contrast, the FJD has benefitted from favorable trade developments, notably the reduction of U.S. tariffs on Fijian exports from 32% to 15%, which enhances the competitiveness of Fijian goods abroad. Although the International Monetary Fund projected a modest economic growth rate of around 3% for Fiji in 2025, the country's reliance on tourism continues to pose some risks, with recent data indicating a slowdown in arrivals from major markets such as Australia and New Zealand.
Overall, currency forecasters suggest that the NZD to FJD exchange rate may remain under pressure as the NZD continues to respond to domestic economic signals and external market dynamics. Investors are urged to monitor these developments closely, as ongoing shifts in economic policy and market sentiment could further impact exchange rates in the near term.
