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13.08.202601:35:57UTC+00New Zealand Dollar Holds at 2-Week Low

The New Zealand dollar hovered around $0.585, its lowest level in two weeks, as the US dollar firmed despite a subdued US consumer inflation report. While the data tempered expectations of further monetary tightening by the Federal Reserve at its September meeting, investors had already scaled back their rate-hike bets after Friday’s weaker-than-expected jobs report. Market sentiment was further constrained by geopolitical tensions, with talks between the US and Iran seemingly at an impasse and both sides hardening their positions, even as President Donald Trump asserted that the US has “total control” over the Strait of Hormuz. On the domestic front, however, the New Zealand dollar remained underpinned by expectations that the Reserve Bank of New Zealand will deliver another quarter-point rate increase next month.

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