NZD Plunges to 2025 Low as USD Hits Yearly High

The New Zealand Dollar (NZD) has extended its slide against the US Dollar (USD), reaching a yearly low of around $0.5600 in recent trading sessions.

This marks the NZD's lowest level since November 2025, when the Reserve Bank of New Zealand (RBNZ) last cut interest rates to 2.25% from 3.75%.

The RBNZ has since raised its cash rate twice, to 2.75%, and traders now expect a third hike on October 28.

Meanwhile, the US Dollar has hit a yearly high, driven by rising interest rates in the United States.

The spread between the two central banks' policy rates is narrower than it was when the NZD/USD pair last traded at this level, but longer-term US borrowing costs have risen to their highest since 2002.