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NZD/USD Tumbles as Hawkish Fed Comments Boost Dollar

Guavy AI Editorial Team
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EUR USD NZD
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The NZD/USD pair declined on Friday as the US dollar strengthened in early European trading. The currency fell to around 0.5720 after gaining ground in the previous session.

This pullback came as market-implied odds of a Federal Reserve rate hike in October rose to 53.1%, up from 44% the day before, following hawkish comments by Fed Chair Kevin Warsh.

Warsh stated that inflation remains 'uncomfortably elevated' and emphasized that economic readings over the summer have not shown meaningful structural improvement.

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