Soaring Tariffs Have Investors Concerned Kiwi Will Test 2020 Low
The kiwi strengthened 1.5% versus the dollar in the first quarter, aided by higher milk powder prices.
Photographer: Brendon O'Hagan/Bloomberg
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Mounting concerns over a global trade war and surging risk-off sentiment have some investors concerned the New Zealand dollar will test its Covid-era low by year-end.
The kiwi may weaken to 55 cents from its current level of around 56 cents by the end of June, according to Australia & New Zealand Banking Group Ltd., while Commonwealth Bank of Australia sees it hitting that level sometime this year. Forecasters at Standard Chartered Plc see it dropping below its March 2020 low of 54.70 cents by December.