The current levels for selling New Zealand dollars in order to purchase Sterling are the best available since April of 2013. The 52 week low for the pair is 1.8140 and current levels are within 2 cents of that benchmark despite the brief relief rally for the Pound.
The reason for the steep drop in Sterling’s value is of course due to the ‘Brexit’ and all the political uncertainty that comes with the process of separation between the UK and the EU.
Moving forward it’s difficult to tell which way GBP/NZD will go as we’re currently experiencing a slight upward bounce in GBP exchange rates across the board due to the positive way the markets have viewed the appointment of Prime Minister in-waiting Theresa May. As a ‘Remainer’ her views on the EU were positive and her appointment has been welcomed due to investor expectations of an amicable separation from the EU, as opposed to a more hard-line approach which could have a detrimental affect on the global economy and particularly the UK’s.
Positive sentiment aside there is also the potential for an interest rate cut in the UK as soon as tomorrow, and should that occur I would expect to see weakness for GBP exchange rates. It may be advisable for those with a GBP to NZD currency requirement to take advantage of GBP’s recent spike upwards over the past couple of days and those gains could be wiped out as soon as tomorrow.
If you are planning to use GBP to buy a foreign currency it may well be worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.