The New Zealand dollar is expected to decrease by around 6% in the next few months due to concerns about an economic slowdown. Investors are anticipating significant interest rate cuts from the Reserve Bank of New Zealand (RBNZ).

The RBNZ's negative economic outlook and worries about potential tariffs under the Trump administration have contributed to the currency hitting a one-year low against the U.S. dollar. Market expectations suggest a 50-basis-point rate cut in the upcoming RBNZ meeting, with some analysts even suggesting a possibility of a more aggressive 75-basis-point reduction. This change in sentiment reflects growing concerns about the economic landscape and its impact on monetary policy in New Zealand.