The New Zealand dollar rose to around $0.578, recouping losses after touching a two-week low in the previous session, as investors reassessed the Reserve Bank's monetary policy outlook. Data last week showed that the Kiwi economy returned to growth in Q3, confirming early signs of strengthening momentum after a prolonged period of sluggish activity and further reducing the already slim likelihood of a rate cut. However, the recovery remains fragile, with gains largely driven by the primary sector rather than broad-based domestic demand. With slack still evident across the economy, the pickup in growth is seen as non-inflationary in the near term. As a result, rate-hike expectations have eased, with markets now pricing a 40% chance of a move by July down from 50%. This follows comments from RBNZ Governor Anna Breman this week that interest rates are expected to remain at current levels through 2026. The Kiwi dollar is on track for an annual gain of more than 3% in 2025.