NZD Slumps Amid RBNZ Rate Hike Anticipation

The New Zealand dollar weakened against other major currencies on Monday in the European session despite expectations of a rate hike by the Reserve Bank of New Zealand (RBNZ).

This move is attributed to high inflation and solid confidence indicators, which have led traders to anticipate that the RBNZ will raise interest rates for the second time in a row.

The expected increase is a 25 basis point hike to 2.75 percent, which would follow on from the previous rate adjustment.