The pound to New Zealand dollar rate has improved for New Zealand dollar buyers as we get closer to further certainty over the Brexit and what it will mean for financial markets. All in all the overall outlook for GBPNZD rates is much better as sterling rises and there remains a distinct possibility that we will see further interest rate cuts in New Zealand.
The New Zealand dollar is looking like it could weaken further owing to more global concerns which will indirectly impact the currency. The overall expectation for the Reserve Bank of New Zealand (RBNZ) is that at some point down the line they will have to do something to try and stimulate the economy and weaken the currency. Previously there had been an expectation that the rates would actually rise triggering further rises in the value of the currency.
Overall we would not expect to see any significant shifts too soon but this could now alongside a stronger pound be the beginning of a decline in the favourable levels on offer for Kiwi sellers. 2017 has not yet really favoured clients selling the pound for the New Zealand dollar but this could now be something we start to witness.
If you have New Zealand dollars you are looking to sell then please make sure you are keeping up to date with the latest trends and themes on the rates as this will be vital to the rate you get. Overall I think the market will now be better for Kiwi buyers than sellers so if you have any transactions to be considering please speak to me Jonathan to get a full overview of the market and all of your options. Please email [email protected] to learn more.