Kiwi Poised for Gains Against Euro on Widening Rate Gap

New Zealand's dollar is poised to gain strength against the euro due to expectations of higher interest rates from the Reserve Bank of New Zealand. Strategists predict that the kiwi will rise by up to 3.2% against the euro over the next three months, with some banks being more bullish than others.

The Reserve Bank of New Zealand is expected to raise its benchmark rate by more than a percentage point over the next year, outpacing the European Central Bank's planned tightening of about 75 basis points. This widening gap between interest rates has led analysts to predict a stronger kiwi against the euro.