Buying New Zealand Dollar rates have tumbled yesterday and throughout the night, as have most other Sterling currency pairings.
The reason behind such movements can be found in both the UK and the US.
Firstly, yesterday the current rumours about a potential near term interest rate hike in the UK were dented quite heavily.
This had previously been one of the saving graces for the UK economy given the uncertainty surrounding Brexit. The prospect of a rate hike was not only a vote of confidence in the UK economy, but a tempting opportunity for currency investors.
In a world with few certainties now for political stability, the prospect of an interest rate hike and higher guaranteed returns during a set period plays well into the hands of currency investors.
Secondly, we’ve seen a familiar bounce in New Zealand Dollar value in response to a fall in the US Dollar. Featured issues yesterday in the US media which finally put Trump campaign staff and Russian officials in the same room with the official recognition of Government support for Trump.
Investors went fleeing out of the US Dollar into other currencies. Due to the high interest rate available on the New Zealand Dollar relative to other currencies, this once of the biggest to benefit from a strong shift in demand.
With two factors now favouring anyone selling New Zealand Dollars to buy Sterling, buyers may be wise to secure a rate of exchange soon.
I strongly recommend that anyone with a New Zealand Dollar based currency requirement should contact me on [email protected] to discuss a strategy for your transfer aimed at maximising your currency return.
You can also contact me directly on 01494 787 478 and ask the reception team to speak with Joshua.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.