USD/FJD Outlook:
The USD/FJD rate is slightly weaker but likely to move sideways as it trades below its recent average and within a stable range. Current economic indicators do not signal a strong driver for significant movement in either direction.
Key drivers:
• Rate gap: The US Federal Reserve's focus on interest rates will continue to influence the strength of the USD against the FJD.
• Risk/commodities: Recent strength in oil prices can support the USD as markets react to potential supply constraints, impacting the FJD as a commodities-dependent economy.
• One macro factor: Fiji's projected 3% economic growth in 2026, supported by a 2% increase in visitor arrivals, is a positive signal for the FJD.
Range:
The USD/FJD exchange rate is expected to hold within its recent range, moving between the established highs and lows as market conditions remain stable.
What could change it:
• Upside risk: Stronger-than-expected US economic data or Federal Reserve interest rate hikes could boost the USD.
• Downside risk: A deterioration in global economic conditions or elevated geopolitical tensions could weaken the USD against the FJD.
