Investors worried about trade war impact on New Zealand dollar, forecasting drop to 2020 low

From Yahoo Finance: 2025-04-06 16:00:00

Mounting concerns over a global trade war have investors worried that the New Zealand dollar may hit its Covid-era low by year-end. Forecasters predict the kiwi could drop to 55 cents by June and below 54.70 cents by December. President Trump’s tariff actions may further weaken the currency due to fears of a trade war impacting global growth.

The kiwi strengthened in the first quarter but may face headwinds ahead. Analysts believe risk appetite is a key driver for the currency, with the upcoming Reserve Bank of New Zealand monetary policy decision on April 9 expected to cut interest rates again. Traders are closely watching the outcome, but some believe the impact on the kiwi may be limited.

Next week’s economic events include Japan labor cash earnings on Monday, Australia consumer and business confidence on Tuesday, and the RBNZ rate decision on Wednesday. Other events include China’s CPI and PPI on Thursday and New Zealand’s manufacturing PMI on Friday. Market volatility is expected as investors react to global economic conditions and trade tensions.



Read more at Yahoo Finance: Soaring Tariffs Have Investors Concerned Kiwi Will Test 2020 Low