NZD/USD Plunges to Fresh Yearly Lows on Risk Aversion and Rising Oil Prices

The New Zealand Dollar (NZD) has hit fresh yearly lows against the US Dollar (USD), falling nearly 6% in six weeks due to a perfect storm of risk aversion, high oil prices, and escalating US Treasury yields.

The 10-year US Treasury yield has reached its highest level since 1998, above 5.30%, while the two-year yield remains steady at 4.90%. The price of Brent Oil has also jumped higher, hovering around the $100 level.

This has put significant strain on oil-importing countries like New Zealand, which is heavily reliant on imports. As a result, the NZD/USD pair has dropped to 0.5599, its lowest point since it began falling six weeks ago.