It was most pleasing to see the GBP to NZD rate rise lately following some improvements for the pound against most currency pairs. The Kiwi itself has really been benefiting from the uncertainty elsewhere and the fact that the RBNZ (Reserve Bank of New Zealand) has interest rates at much higher levels than the rest of the world. With the UK offering near zero and some other countries quoting below zero interest rates we can expect the Kiwi to remain popular since it offers investors a much higher level of return than investments elsewhere.
The pound has risen this week but personally I do think the pound will fall in the future since there are such high expectations of further declines, this is basically because there are so many hurdles to overcome. There are some huge political hurdles to overcome for the UK namely on what the shape of Brexit Britain will be and what the relationship with the rest of the world and the EU will deliver. There is clearly no simple easy answer to this question and it will undoubtedly plague the pound for quite some time.
If you wish to buy or sell the New Zealand dollar for the pound in the coming weeks and months the important information will be the outcome of the Brexit negotiations and whether the RBA decides on another rate cut or not. If you are making any foreign currency transfers in the coming weeks please speak to me Jonathan on [email protected] to discuss the very best rates and service.