NZ Dollar Falls Under Pressure from Geopolitics and Hawkish RBNZ

The New Zealand Dollar (NZD) fell against the US Dollar (USD) for the second straight session, despite an early rise to 0.5785.

The NZD/USD pair traded near 0.5770-0.5765, just above last week's low, as safe-haven demand for the USD persisted amid geopolitical tensions.

The tensions were driven by a series of developments involving the United States and Iran, including drone attacks on Saudi Arabia, Jordan, and Iraq, which kept pressure on the NZD/USD pair.

Market participants remained cautious ahead of the two-day Federal Open Market Committee (FOMC) policy meeting, which begins today, and is expected to keep interest rates unchanged.