Renewed geopolitical risks in the Middle East drive investors toward the USD, pressuring the New Zealand Dollar near two-day lows.
NZD/USD declined for a second straight session, trading at 0.5940 in early European trading Tuesday. The pair weakened as the USD gained strength amid escalating US-Iran tensions, prompting a shift toward safe-haven assets.
Market sentiment soured after reports indicated growing frustration within the US administration over stalled negotiations, raising concerns about a potential resumption of military action. Iranian officials also warned of readiness to retaliate, further straining the region’s fragile ceasefire.
Investors are monitoring April’s US consumer inflation data, due later Tuesday, for signs of economic impact from the conflict. Attention also turns to a high-stakes meeting between US and Chinese leaders this week, focusing on trade and energy.