The New Zealand dollar fell to $0.563, hovering near a seven-month low, amid strengthening expectations that the Reserve Bank of New Zealand will cut interest rates again at its policy meeting next week.

Markets have fully priced in a 25-basis-point reduction, following a series of weak economic indicators that reinforced the need for further policy stimulus. Adding to the dovish outlook, data released today showed producer prices rose less than expected in the third quarter, signaling that broader price pressures are continuing to ease.

However, analysts suggest this could be the final cut in the current easing cycle, barring any significant deterioration in global economic conditions.

In a potentially positive development for the export-reliant economy, President Donald Trump last week lifted tariffs on more than 200 food products in response to rising US grocery prices. The affected goods account for approximately 25% of New Zealand's exports to the United States, a move that is expected to provide support to the country's export sector.