The New Zealand dollar hovered around $0.595 on Thursday after rallying more than 1% in the previous session to its highest level in over two months, as mounting hopes of a US-Iran peace deal boosted risk appetite. Reports suggest that both sides are close to finalizing a one-page memorandum aimed at ending their conflict, potentially paving the way for the gradual reopening of the Strait of Hormuz. Meanwhile, domestic labour market data showed mixed results and had little impact on the rate outlook. The unemployment rate edged lower, coming in slightly below expectations, while employment growth missed forecasts. Traders are implying only a 34% chance of a rate hike later this month, although a July increase remains fully priced in amid inflation concerns tied to higher energy prices. The Reserve Bank of New Zealand said the financial system remains resilient despite heightened global risks, though it warned of a slower economic recovery that could weigh on employment.