NZD Hits Two-Month Low as Hawkish Fed Boosts US Dollar

The New Zealand dollar declined to an over two-month low against the US dollar due to a hawkish Federal Reserve, which raised interest rates for the first time in three years.

The Fed's decision brought the target range to 3.75%-4.00% and signaled another hike before year-end, boosting the US dollar.

However, New Zealand's economy showed some resilience despite a severe energy shock from the Middle East conflict, with GDP data exceeding expectations.