NZ Dollar Stabilizes Amid Escalating US-Iran Tensions
The New Zealand dollar has steadied at $0.577 after falling from previous sessions due to escalating tensions between the US and Iran, which have dampened risk appetite.
The conflict shows little sign of abating, with President Donald Trump threatening to intensify the conflict with Iran following Houthi militants' attacks on two Saudi Arabian oil tankers in the Red Sea.
New Zealand is heavily dependent on oil imports from the Middle East, leaving its economy vulnerable to supply disruptions and higher energy costs. This has heightened inflation concerns amid rising oil prices.
The Reserve Bank of New Zealand is expected to raise interest rates again in September following hot inflation data, with rates projected to reach at least 3.0% by year-end and peak at 3.5% around the middle of next year.