New Zealand Dollar Surges Amid Positive Business Outlook

The New Zealand dollar gained significantly following a positive business outlook survey. In contrast, the U.S. dollar struggled before a critical U.S. inflation reading. The Reserve Bank of New Zealand's recent rate cut boosted business confidence to a decade high, making the kiwi a standout performer.

The New Zealand dollar made solid gains on Thursday, buoyed by an upbeat business outlook survey, while the U.S. dollar struggled ahead of a key inflation report. The core personal consumption expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, headlines a quiet week for market-moving data.

Notably, the New Zealand dollar scaled an eight-month high of $0.6295 after a survey revealed a surge in business confidence to a ten-year peak. Michael Gordon, a senior economist at Westpac, attributed this rise to the Reserve Bank of New Zealand's recent rate cut. The kiwi was last up 0.73% at $0.6291.

The U.S. dollar, in contrast, continued to decline amid expectations for a Fed rate cut next month, influenced by remarks from Fed Chairman Jerome Powell. The dollar index fell to a 13-month low of 100.51 on Tuesday, while the yen remained steady, benefiting from the Bank of Japan's hawkish stance.

(With inputs from agencies.)