Thursday morning in Asia, the New Zealand dollar plummeted against its major counterparts after the Reserve Bank of New Zealand held the Official Cash Rate at 3% and said the pace and extent of further OCR increases was likely to be more moderate than was projected in the June statement.
The NZ dollar slumped to a 4- 1/2 -month low against the aussie, 6-day low against the greenback and a 10-day low against the euro.
RBNZ Governor Alan Bollard noted, in a statement accompanying the decision announcement, that while both the global and domestic economies continue to recover, "the outlook has weakened since our June Statement."
In July, the RBNZ raised the OCR from 2.75 percent to 3.00 percent. That move was preceded in June to hike the rate from 2.50 percent to 2.75 percent.
Prior to the June hike, the OCR had remained at 2.50 percent for 9 months, having been reduced to that historic low in April 2009.
The New Zealand dollar declined against the U.S. currency in early Asian session on Thursday. As of now, the kiwi-greenback pair is trading at a 6-day low of 0.7258 with 0.700 seen as the next downside target level. At yesterday's close, the pair was quoted at 0.7268.
During early Asian deals on Thursday, the New Zealand dollar weakened against the Australian dollar. The kiwi is currently trading at a 4- 1/2 -month low of 1.2932 against the aussie, compared to yesterday's closing value of 1.2877. The next downside target level for the kiwi is seen at 1.314.
The New Zealand dollar dropped against the Japanese yen in early Asian deals on Thursday. At present, the kiwi-yen pair is worth 62.0, down from yesterday's close of 62.34. If the NZ dollar falls further, it may likely target the 60.8 level.
In early Asian session on Thursday, the New Zealand dollar plunged against the euro and touched a 10-day low of 1.7936 at 5:35 pm ET. Although the kiwi recovered slightly thereafter, it weakened again shortly. The kiwi is now worth 1.7901 per euro. On the downside, 1.820 is seen as the next target level for the NZ dollar. The euro-kiwi pair closed yesterday's trading at 1.7786.
Looking ahead, the Eurozone trade balance for July is due in the upcoming European session.
Across the Atlantic, the U.S. PPI for August, weekly jobless claims data for the week ended September 11, Treasury Department's report on the flows of financial instruments into and out of the U.S. for June and the results of the Philadelphia Federal Reserve's manufacturing survey are slated for release in the North American session.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.