New Zealand dollar holds near three-month highs around $0.597
The New Zealand dollar traded near a three-month high around $0.597 on Wednesday after the prior session’s gains supported risk sentiment tied to Middle East negotiation progress.
The New Zealand dollar traded near a three-month high at around $0.597 on Wednesday, after settling higher in the previous session as signs of progress in Middle East negotiations improved risk sentiment.
Pakistan said on Tuesday that it had made significant progress in talks with Iran aimed at ending the war, while Tehran and Oman discussed plans for a temporary transit corridor through the Strait of Hormuz, along with a project to clear mines from the waterway.
The developments eased concerns over prolonged disruptions to shipping through the strait.
Also supporting the kiwi, the Reserve Bank of New Zealand is widely expected to deliver another 25-basis-point rate hike at its meeting next week, with the policy rate seen reaching 3.0% by year-end.
However, weak retail sales data released earlier this week has raised fresh questions about the extent to which the central bank can continue tightening policy.