Forex
NZD Falls as Fed Hike Bets Rise Amid US-Iran Tensions
The New Zealand Dollar (NZD) has declined against the US Dollar (USD), trading near $0.5870, down around 0.15% for the day.
Market bets for a Federal Reserve interest rate hike at the September 15-16 meeting have increased due to better-than-expected US Nonfarm Payrolls data and rising inflation risks from high energy prices.
The US-Iran tensions are also contributing to the USD's strength, putting pressure on the NZD/USD pair.
RBNZ Governor Anna Breman stated that there is no predetermined path for monetary policy, with a highly uncertain timing of any further rate hike, capping the NZD/USD pair's recent bounce.