New Zealand Dollar Emerges as Best FX Hedge for Economic Gloom
- Kiwi tends to trail G-10, EM peers during recessions: JPMorgan
- Currency could revisit pandemic low if bank crises worsen: CBA
New Zealand dollar banknotes
Photographer: Brent Lewin/Bloomberg
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The New Zealand dollar, one of this year’s worst-performing major currencies, is emerging as a prime choice to hedge against potential US dollar strength should the global economic outlook darken.
The kiwi has lost about 2.6% in 2023, beating only the Norwegian krone among Group-of-10 currencies. The slide took place in the context of a modestly weaker greenback, with the Bloomberg Dollar Spot Index dropping 0.4% this year.