The New Zealand dollar depreciated to around $0.602 on Friday, ending a two-day gain, as risk sentiment soured following renewed tariff threats from US President Donald Trump. On Thursday, Trump said the US planned to impose blanket tariffs of 15% or 20% on most other trade partners - a move that poses fresh challenges for New Zealand, which had been facing just a 10% levy. On the monetary policy front, the Reserve Bank of New Zealand this week held its official cash rate steady at 3.25% as widely expected, though it left the door open for a potential rate cut in August should economic conditions evolve as anticipated. Markets are pricing in a 65% chance of a quarter-point cut next month, with nearly even odds of a further reduction to 2.75% later this year. The kiwi is down 0.6% so far this week, on track to snap a two-week run of gains.