The New Zealand dollar remained at a six-week high, hovering around $0.584, as the prospect of additional rate hikes at home helped offset a broader risk-off move amid escalating US-Iran tensions. The Reserve Bank of New Zealand is widely expected to raise interest rates again in September, with the OCR projected to reach at least 3.0% by the end of the year. Earlier this week, RBNZ Chief Economist Paul Conway warned that renewed hostilities in the Middle East could reignite inflationary pressures, potentially prompting the central bank to tighten policy further after last week’s first hike in more than three years. Meanwhile, the US dollar rebounded from a near one-month low after the latest data pointed to continued resilience in the US economy, capping further gains in the kiwi. For the week, the currency rose more than 1%, marking its third straight week of gains.
