Exchange Rate Calculator

The exchange rate between the United States Dollar (USD) and the New Zealand Dollar (NZD) has experienced notable fluctuations over the past few months. Understanding these movements is crucial for businesses, investors, and individuals engaged in transactions involving these currencies. This report provides an analysis of the recent trends, underlying factors influencing the exchange rate, and forecasts for the near future.

Recent Exchange Rate Trends

In 2025, the USD/NZD exchange rate has exhibited significant volatility. The highest rate recorded was 1 USD to 1.8100 NZD on April 8, 2025, while the lowest was 1 USD to 1.6482 NZD on June 12, 2025. The average exchange rate over this period was approximately 1 USD to 1.7239 NZD. (exchange-rates.org)

This downward trend indicates a depreciation of the USD against the NZD by approximately 7.58% over the year. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the USD/NZD exchange rate:

1. Interest Rate Differentials: The Reserve Bank of New Zealand (RBNZ) has maintained a relatively stable monetary policy, while the Federal Reserve in the United States has adjusted interest rates in response to domestic economic conditions. These differences influence investor capital flows, affecting the exchange rate.

2. Economic Indicators: New Zealand's economy has shown resilience, with positive data in sectors such as agriculture and tourism. In contrast, the U.S. economy has faced challenges, including trade tensions and varying economic growth rates, impacting the USD's strength.

3. Commodity Prices: New Zealand's economy is heavily reliant on commodity exports, particularly dairy products. Fluctuations in global commodity prices can strengthen or weaken the NZD.

4. Global Market Sentiment: Risk appetite among investors affects currency values. In times of global uncertainty, the USD often serves as a safe-haven currency, leading to its appreciation. Conversely, during periods of economic optimism, currencies like the NZD may strengthen.

Forecasts and Projections

Looking ahead, various financial institutions have provided forecasts for the USD/NZD exchange rate:

• Short-Term Forecasts: For the current week, the exchange rate is projected to average around 1 USD to 1.6522 NZD, with an estimated trading range between 1.6357 and 1.6687 NZD. The next week's forecast suggests an average rate of 1 USD to 1.6535 NZD, within a range of 1.6370 to 1.6701 NZD. (midforex.com)

• Medium-Term Forecasts: By September 2025, the exchange rate is expected to reach 1 USD to 1.7053 NZD, indicating a potential appreciation of the USD. By December 2025, the rate is forecasted to be 1 USD to 1.6808 NZD. (exchangerates.org.uk)

• Long-Term Forecasts: Projections for the next year estimate an average rate of 1 USD to 1.6762 NZD, with a range between 1.6594 and 1.6929 NZD. Looking further ahead, a 5-year forecast suggests an average rate of 1 USD to 1.7752 NZD, within a range of 1.7575 to 1.7930 NZD. (midforex.com)

Implications for Stakeholders

The fluctuations in the USD/NZD exchange rate have several implications:

• Importers and Exporters: Businesses engaged in trade between the U.S. and New Zealand need to consider hedging strategies to mitigate the risks associated with currency volatility.

• Investors: Currency movements can impact the returns on investments denominated in foreign currencies. Diversification and careful analysis are essential to manage potential risks.

• Travelers: Individuals planning to travel between the two countries should monitor exchange rate trends to optimize their currency exchanges.

Conclusion

The USD/NZD exchange rate has experienced notable fluctuations in 2025, influenced by factors such as interest rate differentials, economic indicators, commodity prices, and global market sentiment. While forecasts suggest potential appreciation of the USD in the medium to long term, stakeholders should remain vigilant and consider strategies to manage the inherent risks associated with currency volatility.