FX.co ★ New Zealand Dollar Edges Lower

The New Zealand dollar slipped to around $0.581 as investors turned their focus to upcoming central bank decisions, led by the US Federal Reserve. Markets widely expect the Fed to leave interest rates unchanged at its first meeting under new Chair Kevin Warsh. At the same time, investors are watching for more details on a US–Iran agreement that could enable a full reopening of the Strait of Hormuz. Domestically, expectations for the Reserve Bank of New Zealand remain skewed toward a July rate hike, though interest-rate swaps now price in two increases for the year, down from earlier projections of three.