New Zealand Dollar Gains on Softer US Dollar
The New Zealand dollar experienced an uptick, reaching approximately $0.573 on Thursday as the U.S. dollar experienced a downturn. This shift followed President Donald Trump's announcement of a 25% tariff on imported cars and light trucks, scheduled to take effect on April 2. These tariffs are expected to coincide with other reciprocal duties planned by the U.S., sparking concerns about a potential broader trade conflict that could negatively impact economic growth. In a recent assessment, S&P Global Ratings suggested that New Zealand and other regional economies are likely to be less impacted by these U.S. trade measures, providing a degree of support for the Kiwi dollar. However, domestically, the prospect of further monetary easing by the Reserve Bank of New Zealand continues to exert pressure on the currency. Despite surprising GDP figures showing unexpected growth, economists anticipate that the RBNZ is poised to execute additional rate cuts in April and May.
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