The New Zealand dollar rose to around $0.580 on Monday, extending its rebound from the previous session as risk sentiment improved following a pause in military strikes between the US and Iran. Iran said on Sunday that it had halted retaliatory attacks against US allies in the Middle East after Washington suspended further strikes against the country since Friday, offering relief to global markets after the recent escalation in the conflict. The lull in fighting pushed oil prices lower, providing additional support for the kiwi, as New Zealand’s heavy reliance on imported energy leaves the currency sensitive to fluctuations in fuel costs. On the policy front, the Reserve Bank of New Zealand is widely expected to deliver another 25-bp hike in September following hot inflation data last week, with markets implying rates to reach at least 3.0% by year-end and peak at 3.5% around mid-2027.