The New Zealand dollar strengthened to around $0.60 on Monday, recovering losses from the previous session, supported by a softer US dollar amid ongoing trade tensions. Last week, President Trump announced that the US will raise steel import tariffs to 50% starting June 4, framing it as a move to reduce dependence on China. Tensions escalated further as China accused the US of breaching the May trade truce and vowed strong retaliatory measures. Meanwhile, the Reserve Bank of New Zealand recently cut its official cash rate, which weighed slightly on the currency. However, the May cut suggests the easing cycle may be nearing its end after 225bps of reductions since August. RBNZ Assistant Governor Karen Silk also noted that interest rates are now within the neutral 2.5%–3.5% range, and future moves will be data-dependent, as previous cuts are still filtering through the economy. Despite ongoing global trade uncertainty, she expects a recovery supported by earlier easing.