The USD to FJD exchange rate is currently range-bound, hovering at recent highs near 2.2733.
Key drivers include the expectation of more rate cuts by the Federal Reserve, which may weaken the USD. Improving global economic growth, alongside rising commodity prices, could add volatility to the USD's performance. Meanwhile, the Reserve Bank of Fiji maintains a stable interest rate to support economic activity, which plays a role in stabilizing the FJD.
In the near term, the USD to FJD is expected to trade within its recent stable range, between slight fluctuations around the current price.
Upside risks could arise if ASEAN countries accelerate their shift away from the USD, creating further demand for the FJD. Conversely, a significant decline in global growth or a resurgence of tariffs on Fijian exports could negatively impact the FJD and widen the trading range downward.