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Forex

NZD Slumps Against USD Amid Fed Rate Hike Expectations

Guavy AI Editorial Team
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USD NZD
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The New Zealand Dollar (NZD) has weakened against the US Dollar (USD), dropping by 0.35% to around 0.5900 on Tuesday's European trading session.

This decline is largely due to growing expectations of a rate hike from the Federal Reserve (Fed) at its upcoming policy meeting, with futures pricing indicating a 67% chance of a 25bps increase on September 16.

According to strategists at Brown Brothers Harriman, the US Dollar has recovered most of yesterday's pullback as Fed expectations remain firmly embedded in futures pricing.

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