The NZD to FJD exchange rate is currently range-bound, fluctuating near 1.3038, close to its 3-month average.
Key drivers influencing this trend include:
- The anticipated rate cuts by the Reserve Bank of New Zealand, which are expected to weaken the NZD in the coming months, as per Bank of America's revised forecasts.
- Fiji's economic growth projections have been adjusted downwards to 2.6% for 2025, impacting the FJD's strength amid ongoing trade challenges, including significant US tariffs imposed on Fijian exports.
- Despite global economic uncertainties, the FJD has demonstrated stability against major currencies, supported by the Reserve Bank of Fiji's consistent monetary policy.
In the near term, the NZD to FJD is likely to trade within a stable range, reflecting recent market dynamics. An upside risk could emerge from improved global economic conditions that favor NZD recovery, while a downside risk may stem from continued negative impacts from US tariffs on Fijian goods, potentially affecting the FJD's performance.