The New Zealand dollar is leading G10 FX performance, while the Korean won is outperforming on reported US dollar selling by Korean exporters. New Zealand’s preliminary election outcome has lowered perceived risk that the Reserve Bank of New Zealand shifts back to a dual inflation-employment mandate, a change that could have implied a more dovish policy bias given weak labour market conditions.
Wellington Election Outcome and RBNZ Policy Mandate
In Wellington, the ruling centre-right coalition holds a one-seat majority after Sunday’s election, with final results due on 27 November. The incumbent group led by the National Party is seeking to maintain the RBNZ’s sole price stability mandate, in place since December 2023. The Labour Party had campaigned on a proposal to reinstate a dual inflation-employment framework.
