New Zealand dollar holds losses near $0.595 amid risk
The NZ dollar hovers around $0.595 after a 0.4% drop, pressured by US-Iran secondary sanctions headlines and weak domestic retail sales data.
The New Zealand dollar hovered around $0.595 on Tuesday after falling 0.4% in the previous session, as escalating tensions between the US and Iran weighed on market sentiment.
Treasury Secretary Scott Bessent said on Monday the US was expanding the scope of commercial activities that could be subject to secondary sanctions across five sectors of the Iranian economy, while also imposing new sanctions on nearly 60 entities, individuals, and vessels allegedly supporting Iran’s oil revenues, weapons procurement, and cyber activities.
The kiwi also faced pressure from weak domestic retail sales data, which pointed to softer consumer demand and raised concerns about the strength of the economic recovery, potentially reducing the scope for further monetary tightening.
Nevertheless, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September, as inflation remains elevated.