New Zealand Dollar Slips After Soft Inflation Expectations

The New Zealand Dollar weakened against major currencies on Monday after softer-than-expected inflation expectations data was released. The Reserve Bank of New Zealand's (RBNZ) survey showed a decline in two-year inflation expectations, falling to 2.5% as of the first quarter of 2025.

This move brought expectations closer to the RBNZ's 1-3% target band, suggesting that price pressures may be cooling faster than policymakers had anticipated.

The New Zealand Dollar dropped by approximately 0.4% against the US Dollar, trading around $0.6150 as of 10:00 AM NZST. The currency also slipped against the Australian Dollar and the Euro, reflecting a broad shift in market sentiment.