The New Zealand dollar rose to around $0.585, climbing for a third consecutive session to reach its highest level since late September, as investors bet on a potential RBNZ rate hike next year. This follows recent data showing the economy rebounded in Q3, reinforcing earlier signs of a modest pick-up after an extended period of weak activity. This added further support to expectations of a rate increase, with markets now pricing in roughly a 45% chance of a move by July. The dollar’s weakness, driven by expectations of further US monetary easing, also contributed to the kiwi’s gains. Nonetheless, uncertainty over the RBNZ’s rate path remains, as the economic recovery is fragile, with growth largely driven by the primary sector rather than broad domestic demand. RBNZ Governor Anna Breman also indicated that interest rates are likely to stay at current levels for some time. The kiwi is on track for an annual gain of more than 4% in 2025.