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20.03.202603:26:10UTC+00New Zealand Dollar Extends Gains

The New Zealand dollar climbed to around $0.588, extending gains from the previous session as intensifying inflation concerns outweighed weaker-than-expected economic growth data. The latest GDP figures highlighted a still-fragile recovery, and economists cautioned that the outlook is subject to renewed risks amid the ongoing conflict in the Middle East. Even so, policy expectations have turned more hawkish. Markets are now assigning about a 50% chance that the RBNZ could start lifting its cash rate as early as May, with rate hikes more firmly priced in by September and December. This repricing reflects fears that the recent jump in energy costs will push inflation well above the RBNZ’s 1–3% target range for much of the year. So far this week, the kiwi has risen nearly 2%, putting it on course to break a two-week losing streak.

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