NZD Edges Lower as RBNZ Signals Gradual Rate Hikes

The New Zealand dollar weakened on Monday to $0.586 after falling by 0.6% last week, as the Reserve Bank of New Zealand's cautious approach to further monetary tightening weighed on the currency.

Last week, the RBNZ raised its official cash rate for a second consecutive meeting, but signaled that future increases would be gradual amid increasing risks to the economic outlook.

Governor Anna Breman stated that the bank wants time to assess how previous rate hikes feed through to the real economy, while Assistant Governor Karen Silk indicated that policymakers are more likely to wait until December before raising rates again.