The New Zealand dollar weakened to around $0.581, approaching a two-month low touched in early March, as markets weighed a cautious economic outlook against persistent inflation concerns. Fitch Ratings downgraded New Zealand’s credit outlook, lowering its AA+ rating to negative due to growing challenges in reducing debt after years of delayed fiscal consolidation. This added to worries following weaker-than-expected GDP figures last week, underscoring a still-fragile recovery that faces further risks amid the ongoing conflict in the Middle East. These concerns offset rising expectations for a hawkish Reserve Bank policy stance. Market pricing has shifted sharply, now reflecting nearly 90 basis points of tightening this year. Just last month, the central bank indicated that even a single rate hike was not fully priced in. Investors are now awaiting Governor Anna Breman’s speech on Tuesday for cues on the economy and rate path.