IBISWorld forecasts the US$/NZ$ exchange rate to increase by 1.8% in 2024-25, to $0.6213. The Reserve Bank of New Zealand is likely to maintain the current cash rate level and is even considering a rate hike in line with its “higher for longer” rate policy. New Zealand is expected to witness a rate cut in late 2025 as the RBNZ is apprehensive about sticky inflation. Declining expectations of a rate cut are boosting the New Zealand dollar’s strength against the US dollar. Improving retail sales in the country are also benefiting the New Zealand dollar as it signals the central bank to tread cautiously with rate cut decisions. However, the US Federal Reserve’s similar disposition is also strengthening the USD, limiting the increase in the exchange rate.