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NZD/USD slips as US Iran strikes lift safe-haven demand
The pair traded near 0.5830, down 0.19% on the day, while Iran warned it would block Oil and Gas through the Strait of Hormuz during the strikes.
FXStreet reports NZD/USD fell on Friday, trading around 0.5830, as a renewed risk-off mood following fresh US strikes against Iranian infrastructure boosted demand for the US Dollar.
The report cites a sixth consecutive day of US strikes, with Iran’s Islamic Revolutionary Guard Corps warning it would intensify retaliation and claiming it targeted the US Al Udeid Air Base in Qatar.
Concerns about potential disruptions to global energy supplies were also a factor, with Iranian authorities reiterating that no Oil or Gas would pass through the Strait of Hormuz while the strikes continue.
On the New Zealand side, FXStreet notes the Reserve Bank of New Zealand raised its Official Cash Rate by 25 basis points to 2.5% and signaled further hikes could be needed due to persistent inflation risks tied to supply shocks from the Middle East conflict, but the broader risk-off environment still favored the USD in the near term.