NZD/USD trades with caution near 0.5800 as Iran rejects US ceasefire proposal

أسواق الإمارات اليومMarch 26, 2026

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NZD/USD remains on the edge around 0.5800 as Iran wants the US to fulfil its demands before ceasefire talks.
Major demands from Iran include the guarantee of a total end to the war, and the closure of US bases in the Middle East.
RBNZ’s Breman said that monetary policy adjustments could be done on either side.

The NZD/USD pair trades cautiously near 0.5800 during the Asian trading session on Thursday. The Kiwi is under pressure as Iran’s rejection to ceasefire proposal and 15-point settlement plan by United States (US) President Donald Trump has raised concerns over hopes of de-escalation in Middle East conflicts.

On Wednesday, Iran’s Fars news agency reported that Tehran doesn’t see the truce and talks as viable in current conditions. Also, Iran demands completion of its key demand before involving in direct talks with Washington, Wall Street Journal (WSJ) reported, which includes the closure of all US bases in the Gulf, reparations for attacks, lifting all sanctions, allowing Iran to retain its missile program without restrictions, and the recognition of Iran’s authority over the Strait of Hormuz.

Uncertainty surrounding the outlook of the war in the Middle East has improved the demand for safe-haven assets, such as the US Dollar (USD). As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to Wednesday’s gains around 99.65.

In addition to heightened geopolitical tensions, firm expectations that the Federal Reserve (Fed) will not commit any dovish monetary policy adjustment this year are also keeping the US Dollar on the front foot.

In New Zealand (NZ), the central bank has warned of high inflation and has kept the likelihood of monetary policy adjustment on either side. “We don’t want to react too soon to inflationary pressures that we can do little about, but we don’t want to wait too long in case we see those inflationary pressures becoming more-long lasting, Reserve Bank of New Zealand Governor Anna Breman said earlier this week, Reuters reports, and added, “I will not rule out either rate hikes or rate cuts because of the uncertainty in the global environment.”

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