Forex

Kiwi Soars as NZ Rate Hike Bets Offset Fed's Dovish Tone

Guavy AI Editorial Team Published July 30, 2026

Instruments

EUR USD NZD

The New Zealand Dollar (NZD) is gaining ground against the US Dollar (USD), reaching near 0.5810 during early European trading hours on Thursday.

This uptick comes as traders react to the Reserve Bank of New Zealand's (RBNZ) rate hike bets, with financial markets betting on at least two more rate rises in the Official Cash Rate (OCR) to 3.0% this year.

The RBNZ's move is driven by hot domestic inflation data, with New Zealand's annual Consumer Price Index (CPI) inflation hitting a two-year high of 4.10% in the second quarter (Q2) of 2026, up from the 3.1% increase seen in Q1.

The Federal Reserve (Fed), however, opted to keep interest rates unchanged at a range of 3.5% to 3.75%, which has muted the US Dollar's reaction.

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