The New Zealand dollar fell for a second straight session on Wednesday to $0.585, as investors digested comments from Reserve Bank of New Zealand Governor Anna Breman. Breman said first-quarter measures of core inflation remained stable within the central bank’s 1-3% target range, while emphasizing that policymakers remain focused on balancing inflation control ?while supporting an economic recovery. She also stressed that the RBNZ is prepared to act decisively and in a timely manner should short-term price pressures begin to feed into more persistent inflation. Markets are currently pricing in a rate hike as early as May. However, some caution remains, as the Middle East conflict threatens to derail the country’s fragile economic recovery. Externally, attention is fixed on the Federal Reserve’s policy outcome due later today, with the bank widely expected to stand pat. Meanwhile, traders are awaiting President Trump’s response to Iran’s new proposal to reopen the Strait of Hormuz.
