The exchange rate forecasts for USD to FJD indicate a mix of influences affecting both currencies as of September 2025. Analysts report that the US dollar has been trading in a rangebound manner, fluctuating around 2.2387 FJD, which is just 0.6% below its three-month average of 2.2523 FJD. The USD has remained stable within a tight range of 1.8%, indicating a cautious sentiment among investors.
Recent U.S. economic indicators, particularly inflation figures that have reached a seven-month high, have not significantly swayed investor confidence. Despite a rise in inflation, expectations for multiple interest rate cuts by the Federal Reserve through 2025 remain strong. This situation has led to a relatively stable USD as market participants await new consumer sentiment data, which could potentially exert pressure on the currency if morale is impacted.
On the Fijian side, the outlook appears less optimistic. The International Monetary Fund projects a slowdown in Fiji's economic growth to 2.6% in 2025, heavily influenced by a decline in tourism, a significant sector for the country. Visitor numbers have already dropped by 5.3% in early 2025, with further downgrades to growth forecasts reflecting broader global uncertainties.
The Fijian government's initiative to reduce the Value Added Tax (VAT) from 15% to 12.5% may provide some relief to consumers but does not directly alleviate the impact of tourism's downturn. As such, market sentiments surrounding Fiji's currency suggest a bearish outlook, especially in light of these economic headwinds.
Overall, with the USD exhibiting stability amid domestic economic challenges and the FJD facing potential weaknesses due to external factors, the USD to FJD exchange rate may remain relatively steady but is likely to be influenced by ongoing developments in both economies.
