NZD/USD has slumped below the 0.62 level. Economists at HSBC expect the kiwi to remain on the back foot in the next few weeks.

Shorter-term New Zealand-US yield differentials unlikely to offer much support to NZD

“We think the NZD will probably come under pressure in the next few weeks, amid broad risk sentiment and shorter-term yield differentials.”

“Markets may be concerned as policy rates move into restrictive territory, and a hawkish policy stance may cause ‘hard-landing’ risks to rise.”

“With the Fed having a much firmer footing from which to tighten further, shorter-term New Zealand-US yield differentials are unlikely to offer much support the NZD.”