The New Zealand dollar slipped toward $0.587 on Monday, extending its retreat from an over five-week high as risk sentiment weakened amid renewed tensions between the US and Iran. Iran closed the Strait of Hormuz again on Saturday, just hours after reopening it, citing “repeated breaches of trust” by the US and the continuation of a US naval blockade on Iranian ports. Meanwhile, the latest domestic data showed softer food inflation and moderating consumer spending, reinforcing expectations that the Reserve Bank of New Zealand may keep interest rates unchanged for now. However, while price pressures are easing in some categories, underlying inflation remains a key concern, and the RBNZ has recently signaled that it is prepared to raise rates should core inflation accelerate. Attention now turns to the release of the first-quarter CPI reading for further clues on the monetary policy outlook.