After Norway, Will New Zealand’s Fed be second to effect hike rates?

New Zealand’s dollar declined 0.34% to $0.6939, away from a four day peak at $0.6981.

The Reserve Bank of New Zealand will decide on the state’s fiscal policy on Wednesday, with markets expecting a quarter point rate hike. With markets already pricing a rate hike cycle, the likelihood of material NZD upside remains low.

The New Zealand dollar held close to the previous session’s four-day high of $0.6981, changing hands at $0.6960 after three days of gains.

The Federal Reserve will almost start unwinding stimulus from next month and New Zealand on Wednesday is expected to become the second developed country after Norway to hike rates.

The U. S. currency also benefited from high safe haven demand amid concerns spanning the risk of global stagflation to the U.S. debt ceiling debate.