NZD/USD Tumbles as Oil Prices Soar on Geopolitical Tensions

The New Zealand Dollar (NZD/USD) remains under pressure as oil prices and Federal Reserve expectations weigh on its value. The NZD is trading near 0.5880, down around 0.03% on Tuesday. Oil prices are rising due to geopolitical tensions and growing concerns about US inflationary pressure.

WTI crude is trading at $82.10, up more than 6% since the start of the week. Rising oil prices are contributing to elevated US Treasury yields and strengthening the case for tighter US monetary policy.

Cleveland Fed President Beth Hammack has added to hawkish expectations, saying that additional rate increases could be required. Markets now see a roughly 50% probability of a 25-basis-point Fed rate hike in September, compared with about 42% on Friday.