Hedge Funds Shift to Bearish Stance on New Zealand Dollar Amid RBNZ Rate Cuts

Reported 2 days ago

Hedge funds have adopted a bearish outlook on the New Zealand dollar for the first time in a year, predicting further interest rate cuts by the Reserve Bank of New Zealand (RBNZ). As of November 26, leveraged funds transitioned to a net-short position, while institutional managers increased their short bets, anticipating the RBNZ will make its third consecutive 50 basis-point rate cut in February. The kiwi has suffered a decline exceeding 7%, influenced by both the RBNZ's easing policies and a strengthening US dollar, leading economists to forecast further weakening of the currency.

Source: YAHOO

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