NZD Crashes to 11-Week Low Amid Hawkish Fed Comments

The New Zealand dollar hit an eleven-week low on Wednesday, trading at $0.570 as the US dollar gained strength.

This decline comes despite growing expectations of a third interest rate hike by the Reserve Bank of New Zealand (RBNZ) in October.

Richmond Fed President Tom Barkin warned that inflationary shocks could take time to fade, echoing concerns from other Federal Reserve officials who are increasingly concerned about persistent inflation.

The RBNZ's Governor Anna Breman also noted that rising oil prices may push near-term inflation above the central bank's forecast, but emphasized the need for balancing inflation risks with domestic growth.