Kiwi Dollar Craters to New Lows Amid Fed Rate Hike Fears

The New Zealand dollar slipped to its lowest level since November 2025 on October 1st, hitting around $0.562 due to broad-based US dollar strength.

This was driven by sustained rises in US Treasury yields, with elevated oil prices fueling concerns over persistent inflation and reinforcing expectations for further rate hikes by the Federal Reserve.

The ongoing conflict in the Middle East also poses risks to New Zealand's economic recovery, weighing on sentiment toward the currency.