NZD/USD trades higher near the 0.5790 area on Wednesday, reversing its earlier decline as the US Dollar (USD) weakens sharply following the Federal Reserve’s (Fed) monetary policy announcement. The pair initially moved lower as renewed Middle East tensions boosted demand for safe-haven assets. However, the New Zealand Dollar (NZD) recovered after the Federal Open Market Committee (FOMC) left the fed funds rate unchanged within the 3.50%–3.75% range. The decision was approved by a divided 9–3 vote, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan preferring a 25-basis-point increase. Despite the hawkish language and three dissenting votes, the US Dollar fell sharply following the announcement.