The New Zealand dollar is facing another potential downturn, marking its fifth consecutive quarter of decline. Analysts from ACCM Prime and Gaitame.com Research Institute Ltd. warn that the kiwi could weaken beyond its March 2020 low of 54.7 US cents. This forecast comes amid slowing economic growth, which reduces the likelihood of aggressive interest rate hikes.
The currency's struggles are compounded by political uncertainty ahead of an upcoming election. With polls suggesting a tight race, the lack of clarity may further pressure the New Zealand dollar. The combination of economic and political factors could push the kiwi to test levels not seen since the pandemic era.