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NZD/USD rises as RBNZ hike expectations strengthen
NZD/USD was up 0.12% to about 0.5940, helped by USD weakness as US Treasury yields declined after the Treasury expanded long-dated buybacks.
The New Zealand dollar rose for a second straight day versus the US dollar, with NZD/USD trading around 0.5940 and up 0.12% on the day, according to FXStreet.
FXStreet said the Kiwi’s gains were driven by expectations for another Reserve Bank of New Zealand rate hike, with markets pricing in up to three additional RBNZ hikes through early 2027, alongside support from recent hotter-than-expected New Zealand inflation.
On the US side, FXStreet reported that the US dollar remained pressured as recent declines in US Treasury yields reduced the Greenback’s relative appeal, even after yields rebounded slightly on Thursday.
The outlet also pointed to the US Treasury’s long-dated debt buyback plans, starting September 9, that would at least double some buyback operations for 10 to 30 year maturities from $2 billion to at least $4 billion per operation, a move that eased tensions in long-term yields before the partial rebound.