Forex News: NZ Dollar Rises On Hawkish RBNZ Rate Decision

NZ Dollar Rises On Hawkish RBNZ Rate Decision

(RTTNews) - The New Zealand dollar strengthened against other major currencies in the Asian session on Wednesday, after the Reserve Bank of New Zealand maintained its benchmark interest rate and signaled rate hikes at coming meetings.

The Monetary Policy Committee, governed by Anna Breman, voted to hold the Official Cash Rate at 2.25 percent.

The bank has lowered its benchmark rate by 325 basis points since August 2024, bringing it to the lowest since mid-2022.

Asian stock markets traded higher, with markets in South Korea and Taiwan leading regional gains, thanks to support from technology stocks and easing crude oil prices. Persistent optimism about an end to the Middle East war and the potential opening of the Strait of Hormuz are aiding market sentiment.

U.S. President Donald Trump said in a post on Truth Social on Monday that negotiations with Iran "are proceeding nicely!"

An Iranian team is preparing in Qatar for a potential deal with the U.S. despite fresh U.S. military attacks on Iran amid a ceasefire holding in place. A team of high-profile politicians and senior officials from Iran landed in Qatar yesterday to discuss some sensitive issues before reaching a deal with the U.S.

Meanwhile, the U.S. military said it carried out self-defense strikes in southern Iran, while Iran's Revolutionary Guard claimed it fired at an F-35 fighter jet and multiple drones after they allegedly entered Iranian airspace. In the Asian trading today, the NZ dollar rose to nearly a 2-week high of 93.68 against the yen and a 5-day high of 1.2157 against the Australian dollar, from yesterday's closing quotes of 93.03 and 1.2275, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 95.00 against the yen and 1.20 against the aussie.

Against the euro and the U.S. dollar, the kiwi advanced to 2-day highs of 1.9796 and 0.5881 from Tuesday's closing quotes of 1.9920 and 0.5842, respectively. The kiwi may test resistance around 1.96 against the euro and 0.59 against the greenback.

Looking ahead, U.S. MBA mortgage approvals data, U.S. ADP employment data, U.S. Richmond Fed manufacturing index for May and U.S. Dallas Fed services index for May are slated for release in the New York session.

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