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NZD/USD hits fresh YTD lows as USD holds bullish tone
NZD/USD touched 0.5585 on Monday, as investors sold government bonds amid bond-market turmoil and risk-off sentiment.
The New Zealand dollar extended its slide versus the US dollar, with NZD/USD hitting fresh year-to-date lows at 0.5585 on Monday, after ending a six-week losing streak the previous Friday, according to FXStreet.
The outlet linked the move to a stronger safe-haven USD and risk aversion, saying risk-sensitive currencies like NZD were pressured as investors sold government bonds and watched how elevated energy prices could keep inflationary pressures elevated.
FXStreet also cited concerns around public finances and added that DBS Group Research warned the bond sell-off could take a toll on the US dollar if long-dated Treasury yields approach pre-Global Financial Crisis highs, noting higher term premia tied to debt supply and fiscal sustainability may be less supportive for USD than earlier Fed-driven episodes.