The New Zealand dollar dropped to around $0.602 on Friday, reversing gains from the previous session, as rising tensions in the Middle East rattled global markets, leading to a widespread risk-off approach. Israel launched airstrikes against Iran’s nuclear program and military targets, marking a major escalation in the standoff between the two countries and raised fears of a broader conflict in the region. Further weighing on the currency was disappointing domestic economic data.
New Zealand’s manufacturing activity slipped back into contraction in May after four straight months of growth, weighed down by weak demand, rising costs, and waning business confidence amid global economic uncertainties. Despite Friday’s decline, the Kiwi remains on track for its second straight weekly gain.
