Breaking: New Zealands RBNZ raises rate to 2.75% as expected
The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points (bps) to 2.75% from 2.50% after concluding the September monetary policy meeting on Wednesday.
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The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points (bps) to 2.75% from 2.50% after concluding the September monetary policy meeting on Wednesday.

The Reserve Bank of New Zealand (RBNZ) is on track to deliver a follow-through interest rate hike, raising the Official Cash Rate (OCR) by another 25 basis points (bps) from 2.50% to 2.75% on Wednesday.

UOB's Jester Koh note they raise their FY27 Gross Domestic Product (GDP) forecast for India to 7.2% from 6.8% after a stronger-than-expected 1QFY27 expansion of 7.8% year-on-year.

OCBC strategists Sim Moh Siong and Christopher Wong have recalibrated Asian FX forecasts slightly firmer against the US Dollar (USD), with more notable upgrades for KRW and MYR.

United Overseas Bank‘s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD has retreated sharply after last week’s spike, but downside momentum remains limited.

The Mexican Peso (MXN) erases some of its earlier gains against the US Dollar (USD) on Tuesday as the US and Iran launched successive strikes against each other, souring risk appetite and weighing on the emerging market currency. The USD/MXN pair trades at 16.99, virtually unchanged.

Standard Chartered strategists Anubhuti Sahay and Saurav Anand revise their FY27 Gross Domestic Product (GDP) growth forecast to 7.2% from 6.6% following a robust Q1-FY27 print and strong high-frequency indicators.

National Bank of Canada (NBC) strategists note that global equities, including the MSCI ACWI, remain on track for another positive quarter, helped by an August rebound.

The 10-year Treasury yield trades near 4.79%, roughly four basis points higher and at its highest level since January 2025, in a fifth consecutive session of selling.

The US Dollar Index (DXY) edges higher on Tuesday, reversing all of the previous days losses as hawkish Federal Reserve (Fed) expectations and rising US Treasury yields provide a strong tailwind.

The US Dollar (USD) has managed to leave behind the negative start to the week and regained balance on Tuesday. The recovery has come on the back of a generalised recovery in US Treasury yields and ongoing tensions in the geopolitical landscape.

Crude Oil reached its session high in a straight line rather than a grind, with West Texas Intermediate (WTI) pinned beneath $87.50 through the afternoon before taking better than a dollar and a quarter in three consecutive five-minute bars to print just short of $89.00.
The European Central Bank is seen hiking rates in September as the Iran war raises energy costs in the region.

Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $64.76 per troy ounce, down 2.69% from the $66.55 it cost on Monday.

Gold prices fell in India on Tuesday, according to data compiled by FXStreet.

The USD/JPY pair edges higher to around 159.85 during the early European trading hours on Tuesday.

The EUR/USD pair struggles to capitalize on the overnight bounce from the 100-day Simple Moving Average (SMA), near the 1.1575-1.1580 region, or a one-and-a-half-week low, and drifts lower during the Asian session on Tuesday.

A senior official from Japans Ministry of Finance on Tuesday declined to comment on recent foreign exchange shifts, adding that expected the Bank of Japan (BoJ) to steer monetary policy aligned with the economy, not influenced by the United States.

Silver price (XAG/USD) trades in a tight range at around $66.67 during the Asian trading session on Tuesday. The white metal consolidates as investors await the United States (US) ISM Manufacturing PMI data for August and the JOLTS Job Openings data for July, which will be published at 14:00 GMT.

NZD/USD depreciates after posting minor gains in the previous day, trading around 0.5910 during the Asian hours on Tuesday.