New Zealand dollar jumps 1.29% to $0.5616 as preliminary election results emerge

Key Facts

The New Zealand dollar jumped 1.29% to 0.5616 U.S. dollars on November 9 as the U.S. dollar fell and risk appetite improved, according to Reuters. The move followed a drop in NZD/USD to 0.5527 on Friday, its lowest level since April 2025, before it ended the week at 0.55426. InvestingLive reported that the pair rose during Monday’s session after the dollar gave back some of its Friday gains. The report added that New Zealand’s election provided additional support for the currency. The session’s move therefore reflected both an external factor, the weaker dollar, and a domestic factor linked to the preliminary election result.

The improvement extended to the Australian dollar, which rose 0.80% to 0.6912 U.S. dollars in the same session, pointing to gains in two currencies associated with improved risk appetite. Reuters attributed the U.S. dollar’s weakness to easing fears of escalation in the Middle East. The report said the improved market mood weighed on the dollar as a safe haven. It did not link the move to lower oil prices or diplomatic progress with Iran. The U.S. dollar’s gains on Friday preceded its decline in Monday’s session, according to InvestingLive’s report on the pair’s movement.

Politically, preliminary results gave the three-party coalition of National, ACT and New Zealand First 67 seats in a parliament projected to have 131 seats. The number of seats needed for a majority is 66, putting the coalition one seat above the threshold based on preliminary figures. Reuters said the narrow margin leaves government formation and future policies in focus. The report quoted Westpac chief economist Kelly Eckhold as saying any government would struggle to pass policies and would lack a strong mandate. The election’s impact on the currency therefore remained tied to a preliminary result that could still change.

About 400,000 votes, or roughly 14% of the total, remain uncounted, according to Reuters. The official results are due to be announced on November 27, and the remaining votes could change the balance of seats. This means the coalition’s preliminary majority does not yet settle the final composition of parliament. The report also identified the narrow majority margin as a source of political uncertainty over the government’s ability to pass policies. The special-vote count remains the next dated milestone in this process.