The USD to FJD exchange rate exhibits a range-bound bias, trading near its 3-month average.
Key drivers include the expected Federal Reserve rate cuts, which will likely weaken the USD, while rising global economic growth and higher commodity prices may add volatility. Additionally, concerns about the U.S. trade tariffs on Fijian exports are weighing on the FJD, as they could reduce revenue for key exports like Fiji Water and kava.
In the near term, analysts anticipate the USD to FJD rate will remain within a stable range, gradually fluctuating as economic factors evolve.
Upside risk comes from improved Fijian economic performance against the backdrop of stable inflation and effective monetary policy. Conversely, downside risk could emerge from a more aggressive dollar depreciation due to the Fed's monetary easing strategy.
