The New Zealand dollar stabilized around $0.580 after falling 0.7% overnight to its lowest level since late July. The decline came as the U.S. dollar strengthened amid increased expectations of a Federal Reserve rate hike next week, while a more dovish Reserve Bank of New Zealand (RBNZ) outlook reduced pressure for immediate tightening. Markets largely expect the RBNZ to leave rates unchanged in October, although a December hike remains almost fully priced in. New Zealand’s manufacturing-sector growth also slowed in August, with businesses citing cost-of-living pressures and the Middle East conflict as obstacles to activity. The kiwi is down more than 1% this week and is heading for a third consecutive weekly decline. Investors are also awaiting BusinessNZ’s PMI and second-quarter GDP data for further indications about economic conditions and the RBNZ’s policy path. The currency remains near a 13-year low against the Australian dollar, reflecting diverging interest-rate expectations between the two central banks.