The New Zealand dollar rose in Asian trade on Tuesday against a basket of major rivals, heading for the fifth straight profit in a row against the US dollar and scaling November 2024 highs as the risk appetite improves worldwide.
US President Donald Trump exempted cell phones, computers, chips, and other electronics from his reciprocal tariffs, removing the pressure on tech companies.
The gains are also boosted by the reducing odds of a RBNZ rate cut in May as the New Zealand central bank prefers to take more time to analyze local and international developments.
The Price
The NZD/USD price rose 0.75% today to $0.5915, the highest since November 2024, with a session-low at $0.5861.
The pair closed up 0.9% on Monday, the fourth profit in a row, and the longest such streak of gains since early March following strong Chinese exports data.
Positive Sentiment
Financial markets opened the week with a positive stance after Trump’s new tariff exemptions for a variety of tech products.
It comes after he suspended his reciprocal tariffs on most countries for 90 days to give time for negotiations.
New Zealand Rates
The odds of a New Zealand 0.25% interest rate cut in May tumbled from 90% to 60%, with investors now waiting for inflation data later this week to gather more clues.
