NZD Holds Ground at Two-Month High Amid Weakening US Dollar

The New Zealand dollar has held onto its recent gains, reaching a two-and-a-half-month high of $0.590. The kiwi's strength is largely due to the weakening US dollar, which has been under pressure from soft economic data.

Investors are reducing their bets on a Federal Reserve rate hike in September as they reassess the US economic outlook. This shift in sentiment has weighed on the greenback and supported currencies like the New Zealand dollar.

The Reserve Bank of New Zealand is also expected to deliver another 25-basis-point rate hike next month, further boosting the kiwi's prospects. However, recent economic data have raised doubts about how much further the RBNZ can tighten policy.