FX.co ★ New Zealand Dollar Slips Amid Risk-Off Sentiment

The New Zealand dollar weakened to approximately $0.603 on Friday, erasing the previous session's gains. This decline was primarily driven by escalating tensions in the Middle East, which shook global markets and fostered a broad move away from riskier assets. The situation intensified as Israel initiated airstrikes targeting Iran's nuclear facilities and military sites, significantly heightening concerns of a wider conflict in the region. Additionally, the currency faced pressure from uninspiring domestic economic data. New Zealand's manufacturing sector contracted in May, ending a four-month streak of growth. This downturn was attributed to sluggish demand, increasing costs, and diminishing business confidence amid global economic uncertainties. Nonetheless, despite the dip on Friday, the Kiwi remains poised for its second consecutive weekly advance.