Aussie, NZ dollars recover after initial Iran-induced plunge

The Australian and New Zealand dollars experienced volatility early March 2, initially plunging against the greenback before recovering most losses as markets began to digest the impact of escalating military conflict in the Middle East.

Following joint strikes by the United States and Israel on Iran over the weekend, investors rushed toward safe-haven assets, causing the "risk-sensitive" Antipodean currencies to drop sharply.

The Australian dollar dived by as much as 1.2% in early Asian trade to hit $0.7033, while the New Zealand dollar fell to $0.5948.

However, both currencies retraced those losses as oil prices eased from their initial surges, with the AUD last down just 0.1% at $0.7107 and the NZD also down 0.1% at $0.5986.