The New Zealand dollar traded around $0.571, its lowest level in more than two months, as a hawkish Federal Reserve strengthened the US dollar. The Fed raised interest rates for the first time in three years, lifting its target range to 3.75%-4.00% and signaling another increase was likely before year-end. New Zealand’s economy expanded 0.2% in the three months to June, beating the 0.1% market forecast and the Reserve Bank of New Zealand’s expectation of no growth. Annual GDP rose 2.6%, above the 2.2% forecast, indicating some resilience despite the severe energy shock linked to the Middle East conflict. The RBNZ recently raised rates for a second consecutive time but indicated a less aggressive tightening path, while markets expect the cash rate to reach 3.0% by December amid higher inflation risks from the oil-price surge.