The pound has hit an all time low against the New Zealand Dollar falling below 2 Dollars to the pound. The rate actually hit a low of 1.9981 as the Kiwi Dollar seems to be strengthening against a host of currencies at present. The prospect of rate hikes, a growing economy, and higher commodity prices have led to calls from exporters for the MPC to weaken the currency.
The strength behind the Kiwi seems to be about strong New Zealand fundamentals at present and the improvement and resilience of the economy has been much better than you would have been expected a month or two after the (February 22) earthquake.
New Zealand have had a stream of bullish economic data recently and yesterday’s merchandise trade data, which showed a surplus of $1.1 billion in April, the highest monthly surplus on record. It has helped the Kiwi to strengthen by nearly 15% against the USD this year.
So looking forward for anyone with a requirement to buy NZD over the coming months the forecast does not paint a pretty picture with potential future interest rate hikes in New Zealand. If however you are looking at moving a lump sum back to the UK, US or Australia then now could not be a better time. If you would like assistance in getting more for your money when making your money transfer then please feel free to contact me on [email protected] and I can explain the mechanics of trading with us and we can have a chat about potential future movements for any currency pairing.