FXStreet reports that over the coming year, economists at Westpac expect that the New Zealand dollar will gain further altitude relative to the US dollar and other major currencies. 

“New Zealand will likely see a downturn in some key activity gauges due to the lack of international tourists during summer. Even so, we still expect that New Zealand will outperform others on the global stage. Against that backdrop, we see ample scope for the New Zealand dollar to push higher over the next few months and have pencilled in a peak of 0.78 against the US dollar in early 2022.”

“The New Zealand economy’s creditable performance will see the New Zealand dollar strengthening relative to both sterling and the euro over the course of 2021. The UK is continuing to struggle with rising infection numbers and a double-dip recession is looking likely. In the case of the euro area, measures to protect public health have been a drag on activity and inflation remains muted.”