The pound to New Zealand dollar rate has fallen dramatically in the last few weeks as the pound slides on the uncertainty of the Brexit worries. Most clients looking to buy or sell the pound for Kiwi have had some very tough times int he last week as the reality of the Brexit hits home and investors worry over just what is around the corner.
The Kiwi has benefited from being seen as a higher yielding currency with a higher interest rates than the UK which means investors prefer to put their money in the currency rather than the pound. From an investor point of view holding Kiwis will return them more money then simply relying on the falling and plummeting pound.
The next direction is likely to be downard for the GBPNZD pair as investors prepare for the worst but those selling the Kiwi should be careful of becoming too complacent! The Kiwi is subject to the moves from central banks and other global factors which can heavily weigh on confidence and cause the rates to struggle. A strong interest rate can become less important if there is great global uncertainty or unease at what is around the corner.
If you have a currency transfer to make looking at the most likely options on the market is the best way to mitigate the uncertainty. For more information at no cost or obligation please speak to me Jonathan Watson by emailing me on [email protected]