New Zealand Dollar declines to near 0.5650 despite RBNZ hike bets
The NZD/USD pair loses momentum to near 0.5655 during the early European trading hour on Tuesday. The New Zealand Dollar (NZD) extends its downside to a three-month low against the US Dollar (USD) amid ongoingUS-Iran tensions. Traders will keep an eye on the Fedspeak later on Tuesday.
The New Zealand Dollar (NZD) edged closer to a three-month low of 0.5655 against the US Dollar (USD) on Tuesday, as tensions between the United States and Iran weighed on the currency. Traders are closely monitoring Federal Reserve speeches later in the week, while the Reserve Bank of New Zealand (RBNZ) prepares for a potential rate hike at its upcoming meeting.
The RBNZ governor, Anna Breman, delivered hawkish remarks that have increased the odds of a 25 basis point hike to 3.00% at the October 28th meeting, from 57% to 73%. Additionally, Iran's Foreign Minister stated that Qatari mediators would hold talks with the US and Iran, discussing proposals to potentially reopen the Strait of Hormuz.
If implemented, the reopening could benefit a safe-haven currency like the Greenback, negatively impacting the NZD. However, a hawkish stance from the RBNZ may limit the Kiwi's losses.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
