New Zealand dollar trades near three-month highs

The New Zealand dollar hovered around $0.597 on Monday, close to three-month highs, supported by broad weakness in the US dollar.

The greenback remained under pressure following the US Treasury’s announcement last week that it would increase its purchases of longer-dated government bonds.

Meanwhile, investors awaited details on what the US has billed as its toughest-ever sanctions campaign against Iran.

Tehran, however, dismissed the threat of intensified sanctions over the weekend, keeping geopolitical uncertainty elevated.

On the domestic front, New Zealand retail sales fell 0.5% in the June quarter, missing expectations for a 0.1% gain and reversing a 1% increase in the previous quarter.

This points to weakening consumer demand, raising concerns about the country’s economic recovery.

Still, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September, as inflation remains elevated.