The New Zealand dollar held around $0.584, its highest level in six weeks, supported by expectations that the Reserve Bank of New Zealand will continue tightening monetary policy, alongside broad weakness in the US dollar. Markets widely expect the RBNZ to deliver another rate hike in September, with the OCR seen reaching at least 3.0% by the end of the year. RBNZ Chief Economist Paul Conway said earlier this week that renewed conflict in the Middle East could fuel inflationary pressures, reinforcing the case for further policy tightening following last week's first rate increase in more than three years. Meanwhile, the greenback hovered near a one-month low as investors scaled back bets on a near-term Federal Reserve rate hike after softer-than-expected inflation data. However, escalating geopolitical tensions remain a downside risk for the New Zealand dollar, as heightened uncertainty could weaken global risk appetite and weigh on risk-sensitive currencies such as the kiwi.