The New Zealand dollar hovered around $0.599 on Friday, after sliding to a two-week low in the previous session as heightened tensions in the Middle East and fears of possible US involvement weighed on sentiment. The White House said on Thursday that President Donald Trump would decide within the next two weeks whether the US would get directly involved in the escalating Israel-Iran conflict.
In New Zealand, latest data showed the economy grew faster-than-expected in the March quarter, firming up the recovery from last year’s recession and giving the Reserve Bank more flexibility in deciding when to cut interest rates again. Markets imply there might be only one rate cut left in the current easing cycle, which is fully priced in by November. For the week, the kiwi is down about 0.4%.
