The US Dollar gained momentum against major currencies, including the New Zealand Dollar, amid growing expectations of an interest rate hike and ongoing monetary tightening by the US Federal Reserve. According to FX Street, the NZD/USD pair fell below 0.5765, marking a decline of more than 2.5% in September and reaching two-month lows.
Gold prices also remained under pressure, weighed down by a stronger US Dollar, rising US Treasury yields, and anticipation of further Fed rate increases. FX Street noted that the US Dollar’s outperformance is supported by robust Treasury yields and market consensus that the Fed will maintain its tightening stance beyond the upcoming policy meeting on Wednesday.
For Japanese investors, these developments highlight the importance of monitoring US monetary policy shifts, which can impact currency volatility and influence cross-border investment strategies in FX and equities.