New Zealand Dollar Holds Losses

2026-08-25 02:28 By Judith Sib-at 1 min. read

The New Zealand dollar hovered around $0.595 on Tuesday after falling 0.4% in the previous session, as escalating tensions between the US and Iran weighed on market sentiment.

Treasury Secretary Scott Bessent said on Monday the US was expanding the scope of commercial activities that could be subject to secondary sanctions across five sectors of the Iranian economy, while also imposing new sanctions on nearly 60 entities, individuals, and vessels allegedly supporting Iran’s oil revenues, weapons procurement, and cyber activities.

The kiwi also faced pressure from weak domestic retail sales data, which pointed to softer consumer demand and raised concerns about the strength of the economic recovery, potentially reducing the scope for further monetary tightening.

Nevertheless, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September, as inflation remains elevated.



News Stream
New Zealand Dollar Holds Losses
The New Zealand dollar hovered around $0.595 on Tuesday after falling 0.4% in the previous session, as escalating tensions between the US and Iran weighed on market sentiment. Treasury Secretary Scott Bessent said on Monday the US was expanding the scope of commercial activities that could be subject to secondary sanctions across five sectors of the Iranian economy, while also imposing new sanctions on nearly 60 entities, individuals, and vessels allegedly supporting Iran’s oil revenues, weapons procurement, and cyber activities. The kiwi also faced pressure from weak domestic retail sales data, which pointed to softer consumer demand and raised concerns about the strength of the economic recovery, potentially reducing the scope for further monetary tightening. Nevertheless, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September, as inflation remains elevated.
2026-08-25
New Zealand Dollar Eases from Multi-Month Highs
The New Zealand dollar fell to around $0.596 on Monday, easing from nearly three-month highs as risk sentiment weakened ahead of the US announcement of new sanctions against Iran. Treasury Secretary Scott Bessent said last week that Washington intends to collapse Iran with what he described as the “toughest sanctions in history.” Tehran, however, dismissed the threats as a sign of desperation, saying the new sanctions would fail to defeat the country. On the data front, New Zealand retail sales fell 0.5% in the June quarter, missing expectations for a 0.1% gain and reversing a 1% increase in the previous quarter. This points to weakening consumer demand, raising concerns about the country’s economic recovery and potentially limiting the scope for further rate hikes. Still, the Reserve Bank of New Zealand is widely expected to raise interest rates again in September as inflation remains elevated.
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New Zealand Dollar Rises Further on Weaker US Dollar
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2026-08-20