NZD/SEK settles below 2-week high, posts weekly gain
The NZD/SEK currency pair settled below recent high of 5.7837, its strongest level since May 14th, in the wake of the RBNZ’s policy decision and Swedish GDP data.The Reserve Bank of New Zealand cut it
The NZD/SEK currency pair settled below recent high of 5.7837, its strongest level since May 14th, in the wake of the RBNZ’s policy decision and Swedish GDP data.
The Reserve Bank of New Zealand cut its official cash rate by 25 basis points to 3.25% at its May meeting, in line with market consensus.
This way, borrowing costs were brought to their lowest level since August 2022. The rate adjustment came with signals that a more extensive monetary easing cycle may unfold.
The RBNZ monetary policy committee cited elevated commodity prices and easing interest rates as supportive forces for New Zealand’s economic momentum. Despite this, the central bank flagged risks ahead that could hamper recovery.
Meanwhile, the latest data out of Sweden showed the economy had contracted 0.2% quarter-on-quarter in the three months to March 2025, against market consensus of a 0.1% growth and stagnant preliminary estimates.
It has been the first contraction since the fourth quarter of 2023.
The exotic Forex pair gained 0.20% for the week.
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