On May 24, TD Securities stated that the New Zealand Federal Reserve’s decision to raise interest rates by 25 basis points and the ensuing dovish comments had a negative impact on the New Zealand dollar and may weigh on the currency in the short term because the New Zealand Federal Reserve actually Signaling that interest rates have peaked.
Mitul Kotecha, head of emerging markets strategy at TD Securities in Singapore, said the New Zealand dollar was clearly hit by the policy decision, as markets expect the RBNZ to raise rates by around 35 basis points at this meeting, although the market expects a 25 basis point hike. base point.