The New Zealand dollar rose to around $0.575, rebounding modestly from a seven-week low, as a softer US dollar offered support while investors sought fresh monetary policy cues. The greenback came under pressure after Fed Chair Jerome Powell said the Trump administration had used legal threats, including subpoenas, reviving concerns over the Federal Reserve’s independence. Meanwhile, traders continued to assess the Reserve Bank of New Zealand’s outlook for potential rate hikes, with attention turning to the Q4 CPI data due next week. The central bank has recently signaled a prolonged pause, indicating that its rate-cutting cycle has likely concluded. However, Governor Anna Breman also pushed back against expectations of near-term tightening, saying borrowing costs are likely to remain unchanged for an extended period. Investors are expecting rates to remain on hold through the first half of 2026 and a hike not fully priced in until October.