The New Zealand dollar fell to around $0.587 as the US dollar firmed before US inflation data that could shape expectations for the Federal Reserve's next interest-rate moves. A stronger-than-expected CPI (consumer price index) reading may bolster the case for tighter US monetary policy, supporting the greenback. At home, investors continue to price in a September rate increase from the Reserve Bank of New Zealand, after the central bank indicated more tightening may be needed to withdraw monetary stimulus and contain inflation. That view has been tempered by weak labor data last week, which raised doubts about how aggressively the RBNZ can keep lifting rates. Broader risk sentiment was also pressured by uncertainty over a possible Middle East peace deal that could reopen the Strait of Hormuz. Separately, NZ Prime Minister Christopher Luxon kept his position after a leadership vote by lawmakers from his own party less than three months before the election.