The New Zealand dollar edged higher to around $0.595 on Thursday after falling 0.5% in the previous session as the US dollar strengthened following economic data. US inflation and other indicators slightly increased expectations for a Federal Reserve rate hike, leaving traders focused on Fed Chair Kevin Warsh’s first speech at the Jackson Hole symposium on Friday for signals about the Fed’s September policy decision. The Kiwi retained support from expectations that the Reserve Bank of New Zealand will raise its policy rate by 25 basis points next week, with the rate seen reaching 3.0% by year-end. Risk sentiment also improved after Iran and Oman agreed to share control and revenues from the Strait of Hormuz. Earlier Middle East developments, including discussions over a temporary transit corridor and mine-clearing project, had likewise eased concerns about shipping disruption. Weak retail sales data remain a constraint on expectations for how far the RBNZ can continue tightening.