NZD Weakens Below $0.59 as Unemployment Rate Surges to Highest Since 2015

The New Zealand dollar weakened below $0.59 due to a higher-than-expected unemployment rate of 5.6% in Q2, up from 5.3% in Q1.

This unexpected increase in joblessness undermines the case for aggressive interest rate hikes by the Reserve Bank of New Zealand (RBNZ), which is detrimental to the Kiwi's value.

Hopes of a breakthrough between the US and Iran on an interim deal to reopen the Strait of Hormuz may help limit the NZD's losses, as US President Donald Trump announced 'very productive talks' with Iran.