The New Zealand dollar climbed to about $0.589 on the first trading day of August, marking a two-month high. The move came as renewed yen buying pressured the US dollar broadly, while fresh diplomatic efforts in the Middle East supported risk appetite. The greenback’s slide deepened after Japan confirmed it had conducted a coordinated yen-buying intervention with the United States on Friday.
At the same time, President Donald Trump said new talks with Iran would begin on Monday after he called off a planned weekend strike on Tehran, boosting hopes for progress in resolving the months-long standoff. Improving domestic sentiment also supported the kiwi, with both New Zealand businesses and consumers turning more optimistic.
Investors are now looking ahead to New Zealand’s second-quarter labor market report for further insight into the economy’s underlying strength. Futures markets are currently almost fully pricing in a 25-basis-point interest rate increase by the Reserve Bank of New Zealand in September.
