Kiwi Dollar Plunges Ahead of US Rate Hike

The New Zealand dollar has fallen to its lowest level in over two months, reaching $0.574 as traders prepare for a widely anticipated Federal Reserve rate hike. The US dollar is receiving support from markets ahead of the Fed's decision.

Investors are also keeping an eye on the Fed's updated dot plot and economic projections for clues on future rate moves. This information could provide insight into the pace of rate increases.

The Reserve Bank of New Zealand (RBNZ) is expected to raise interest rates again at its October meeting, despite policymakers signaling a slower pace of rate hikes. Market pricing currently implies another rate increase.

RBNZ Assistant Governor Karen Silk has resigned after more than four years with the bank. She will participate in two more MPC meetings before departing in mid-December.