The New Zealand dollar climbed further to $0.594 on Friday, its highest level in over two weeks, supported by growing expectations of tighter monetary policy. Following a hawkish signal from the Reserve Bank of New Zealand, markets are now pricing in a 75% chance of a rate hike in July, with the cash rate expected to reach 3.0% by year-end. RBNZ Governor Anna Breman indicated that interest rates may need to increase as inflationary pressures build. On the data front, New Zealand’s consumer confidence improved in May, recovering partially from April's lows, although sentiment remains below the highs seen earlier in the year as households continue to face higher fuel costs and geopolitical uncertainty. The kiwi also benefited from improved risk appetite after reports that the US and Iran had reached a tentative agreement to extend a ceasefire. The currency has gained about 1.6% this week and is up roughly 0.7% for the month, on track for a second consecutive monthly advance.