The New Zealand dollar has weakened against the Pound as well as a number of other major currencies over the past few days, as hopes of an Interest Rate hike in the US increase.
Whilst the banks over in the US offer little in the way of interest payments, investors have piled money into the likes of the New Zealand and Australian Dollar due to the much higher rate of interest offered and this has caused these high yielding currencies to really gain in value.
The reason behind the weakening of the NZD is being put down to a speech by Boston Fed Reserve Bank’s Eric Rosengren last Friday suggesting he see’s odds of a September interest rate hike rising to 30%, and these increased hopes have resulted in NZD weakness.
I expect the plans of the US Fed Reserve bank to continue to influence the GBP/NZD exchange rate and I think that anyone with an upcoming currency requirement involving the pair should pay close attention to the Feds plans.
Sterling sellers will also need to keep a close eye on monetary policy from the Bank of England. There has been talk of a further interest rate cut and if there is I would expect a steep drop for the Pound.
If you would like to discuss an upcoming currency requirement you required to make, feel free to get 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.