Dollar at week-high after US resumes Iran strikes; RBNZ hike hoists kiwi

SINGAPORE: The US dollar edged to its highest levels in a week in Asian trade on Wednesday as the US renewed ​strikes on Iran, while New Zealand’s currency jumped after the country’s central ‌bank lifted interest rates and flagged further tightening. The greenback strengthened 0.2% to 162.46 yen , advancing for a fourth day to reached the strongest level since July 2. The euro slipped 0.1% to $1.1405, while the ​British pound nudged 0.1% lower to $1.3351. Meanwhile, the kiwi dollar jumped 0.5% to ​highs of $0.5705 after the Reserve Bank of New Zealand hiked rates by ⁠25 basis points to 2.5% to curb inflation pressures, as most economists had expected, ​and said “some further reduction in monetary stimulus is likely to be required” to control ​inflation. The Australian dollar added 0.1% at $0.6938. The US dollar index , which measures the currency against a basket of six peers, touched 101.210 for the first time since July 2. Bids for the greenback, widely considered ​a global safe haven, came after the U.S. unleashed a new wave of strikes against ​Iran on Tuesday and revoked a licence allowing the country to sell oil after three tankers were ‌attacked ⁠in the Strait of Hormuz. “For now, the market is keeping to the playbook that Tehran and Washington are still in a high-stakes game to gain leverage during the temporary truce, and that Tuesday’s incident would not descend back into a full-scale war,” ​DBS analysts wrote in ​a research report. “However, ⁠the incident was a reminder that the real risk remains the expiry of the interim ceasefire agreement in mid-August and the ​red line over transit fees in the Strait of Hormuz.” Brent crude ​was up 2.5% ⁠at $76.03 a barrel in Asian morning trade on Wednesday , extending a rally into a second day. The yen crept toward a fresh 40-year low after Bank of Japan board member Toichiro Asada, ⁠the ​sole dissenter to the BOJ’s decision in June to ​raise interest rates, told Reuters he must see signs of demand-driven inflation before supporting further hikes. Bitcoin was down 1.3% ​at $62,851.94, while ether declined 1.9% to $1,749.96.