New Zealand Exchange Rate

New Zealand

New Zealand: New Zealand Dollar weakens to multi-year low in September

September 7, 2015

The New Zealand dollar (NZD) depreciated to 0.63 NZD per USD on 7 September, which was 5.5% weaker than on the same day of the previous month and 24.8% weaker than on the same day of the previous year, bringing the exchange rate to the lowest level in over six years. Despite a slight recovery in recent days, the NZD has been broadly stable since then.

The currency depreciated steadily over the course of the year, largely due to the sharp fall in dairy prices, the country’s key export market. Weaker than expected GDP growth in Q2 and expectations of a rate hike by the Federal Reserve have been putting additional pressure on the currency in recent months, as well as the devaluation of the yuan and ongoing turmoil in emerging markets.

In the RBNZ’s most recent monetary policy meeting on 10 September, the Bank decreased its Official Cash Rate for the third consecutive time, accentuating the depreciation of the NZD against the U.S. dollar. The Bank suggested that further cuts are possible, which could lead to further downward pressure on the currency.

FocusEconomics Consensus Forecast panelists see the New Zealand dollar trading at 0.65 USD per NZD at the end of 2015. For 2016, panelists see the exchange rate closing the year at 0.65 USD per NZD.


Author:, Economist

Sample Report

Looking for forecasts related to Exchange Rate in New Zealand? Download a sample report now.

Download

New Zealand Exchange Rate Chart


New Zealand Exchange Rate September 2015 0

Note: Exchange rate USD to NZD.
Source: Reserve Bank of New Zealand and FocusEconomics calculations.


New Zealand Economic News

More news

Search form