NZD Plunges to Six-Week Low Amid US Inflation Concerns

The New Zealand dollar has reached a six-week low of $0.579 due to the strong US inflation data in August.

This data reinforced expectations that the Federal Reserve will raise interest rates at its meeting later this week, which has contributed to the NZD's decline.

New Zealand is awaiting its second-quarter GDP data for more information on the health of the economy and how it may affect the Reserve Bank's interest-rate path.

The central bank recently raised its policy rate by 25 basis points to 2.75% for a second consecutive meeting, but warned that any further tightening would be measured due to growing economic risks.