FX.co ★ New Zealand Dollar Rises on US-Iran Agreement

The New Zealand dollar climbed to about $0.585, its highest level in more than a week, as investor sentiment improved following the announcement of a peace agreement between the US and Iran. Pakistan’s Prime Minister revealed the breakthrough, noting that both countries had agreed to an immediate and permanent cessation of military operations on all fronts, including in Lebanon. US President Donald Trump said the Strait of Hormuz would reopen on Friday after the agreement with Iran was signed in Switzerland. Adding further support to the kiwi, the Reserve Bank of New Zealand is widely expected to tighten monetary policy in July. Markets are pricing in an 85% probability of a 25-basis-point rate increase, alongside expectations for two further hikes that would lift the OCR to 3.0% by year-end.