New Zealand Dollar Hits 11-Month Low as US Interest Rate Differential Widens

The New Zealand dollar has continued its decline against the US dollar, reaching an 11-month low. This drop comes after the Reserve Bank of New Zealand's less hawkish meeting in September, which led to a decrease in expectations for a New Zealand interest rate hike in October.

This expectation is partly due to weak economic growth and a struggling labor market. The interest rate differential between New Zealand and the US has widened in favor of US rates after the Federal Reserve raised its benchmark interest rate last month.

The NZD/USD fell around 0.3% to $0.5618, its lowest level since November 2025. This is a result of another surge in long-term US Treasury yields and hawkish comments from Federal Reserve officials.