The New Zealand dollar fell to around $0.588 on Friday, heading for a weekly decline, weighed down by weaker domestic manufacturing data. New Zealand’s manufacturing growth slowed to a seven-month low in April, with the index falling to 50.5 from 52.8 in March, as shipping disruptions, higher fuel costs, and delays in raw material deliveries stemming from the Middle East war weighed on activity. The Reserve Bank of New Zealand has so far been cautious about tightening policy, as the economy has only recently emerged from recession and still has significant spare capacity. Even so, markets are pricing in around a 40% chance of a rate increase later this month, while a move in July remains fully priced in amid mounting inflation concerns due to elevated oil prices. Further pressuring the kiwi, the US dollar strengthened on rising expectations for a Federal Reserve rate hike later this year. The kiwi has fallen more than 1% so far this week, on track for its first weekly loss in three.