The New Zealand dollar hovered around $0.606 on Oct. 18, marking its third consecutive weekly decline.
This downward trend comes as domestic inflation slowed in the third quarter, returning to the Reserve Bank of New Zealand's target range for the first time in over three years.
The easing inflation has fueled market expectations of a possible 50-basis point interest rate cut by the central bank in November, with some analysts even considering a 75-basis point cut.
Additionally, the Kiwi is under pressure from a stronger US dollar, bolstered by positive economic data and anticipation of modest interest rate cuts by the Federal Reserve.
Despite the headwinds, the New Zealand dollar could see some support from strong economic data out of China, as the country's economy is closely tied to the Chinese market.
Data released on Oct. 16 showed New Zealand's annual inflation slowed to 2.2% in the third quarter, down from 3.3% in the previous period.
This marks the first time inflation has fallen within the Reserve Bank of New Zealand's 1% to 3% target range since early 2021.
The drop has fueled expectations that the central bank will cut interest rates in the coming months, potentially weighing further on the New Zealand dollar.