The New Zealand Dollar has started to lose a little ground and there are signs that this trend may continue in the coming weeks.
The drop off started following on from comments from the RBNZ (Reserve Bank of New Zealand) that they will seek to weaken the New Zealand Dollar in the coming weeks and months to help with exports and get the economy moving better.
The problem that they have is should they cut interest rates (which would usually weaken the NZD) then this would then add to the problem of spiralling house prices which is another issue for them to consider.
The prise of wholesale milk powder (New Zealand’s largest export) has been dropping off considerably lately after having a fantastic year last year. Already, 50% of the gains whole milk powder made last year have been eroded so this will become a concern if the trend continues.
Personally I feel that the RBNZ will have to bite the bullet and make a move on interest rates at their next meeting as this will be the quickest way for them to weaken the New Zealand Dollar, making it cheaper to buy.
If you are in the position where you may need to carry out a currency exchange in the coming days, weeks or indeed months involving the New Zealand Dollar then it will be extremely key that you deal with a proactive and knowledgeable currency broker every step of the way.
Here at New Zealand Dollar Forecast we do not only offer the very latest market information but we can also help you with currency exchange too. If you would like our assistance then you can get in contact with me (Daniel Wright) directly on firstname.lastname@example.org with a description of what you are looking to do and I will be happy to get in contact with you personally.