The NZD to SBD exchange rate has a bearish bias.
Key drivers include the interest rate differential, with expectations for the Reserve Bank of New Zealand (RBNZ) to cut rates, potentially weakening the NZD. Meanwhile, the Solomon Islands' Central Bank has adopted an expansionary monetary policy to support growth, which may stabilize the SBD. Additionally, a larger budget for 2026 approved by the Solomon Islands Parliament could boost local economic sentiment.
In the near term, the NZD to SBD is expected to trade within a range near current levels, continuing the recent trend around 4.6611, which aligns closely with its 30-day low and is just below the 3-month average.
Upside risks could arise from a recovery in global markets beneficial to the NZD, while a downside risk is the continuation of rate cuts by the RBNZ affecting the NZD negatively.