NZ Dollar Hits Eight-Week High Amid Weaker US Dollar
The New Zealand dollar has been gaining ground and is now near an eight-week high of $0.587, thanks to a weaker US dollar and positive domestic economic news.
Investors are assessing the Federal Reserve's policy outlook after its decision to hold rates steady despite rising inflation risks due to renewed tensions in the Middle East conflict.
The New Zealand dollar has gained over 1% this week and more than 3% in July, with markets implying almost a 90% probability that the Reserve Bank of New Zealand will hike its cash rate again in September.
Domestically, a business confidence survey from ANZ-Roy Morgan showed firms have become more optimistic, while their consumer confidence index rose 8 points to 99.3 in July, marking its highest level in five months.