New Zealand Prime Minister talks the Kiwi Dollar lower.
Sterling exchange rates have strengthened by over 0.5% this morning against the Kiwi Dollar as last night the New Zealand Prime Minister John Key tried to talk the currency lower yesterday by calling the NZD overvalued even as the country’s economic growth looks set to outpace the UK, EU, and theUS this year.
Key stated “we’re considering what we can do to resist a rising exchange rate” and “kiwi strength was the result of weakness in US and European economies.” The pound is currently down around 3% this year against the Kiwi and the strong economy in New Zealand is meaning that the Reserve Bank of New Zealand are finding it difficult to raise interest rates as this would strengthen the currency even further.
New Zealand have set their interest rates at a low of 2.5% For those of you that require buying NZD if an unlikely rate hike occurs we may see the KIWI continue its run on the pound. At some point New Zealand will probably raise rates this year. If you are holding out for levels of 2.0 or above you may want to move your target level as sterling has been as low as 1.84 this year. Make sure that you are in a position to be able to move on your funds should a movement be favourable before this occurs. If you require buying or selling the KIWI Dollar then please feel free to contact me at bma@currencies.co.uk and we can discuss all the options that may be suited to your situation. You can even call me on 01494 787 478 if you would like to discuss things in more detail. Just ask for Ben Amrany
