Important news to drive NZD exchange rates!

New Zealand Dollar Outlook: NZD Rises Following Support Package From RBNZ

The New Zealand dollar is now at risk of losing ground further in the future as investors gear up for the US Federal Reserve to tighten further monetary policy in the future. With interest rates having been risen now to 2% in the US, the US dollar should continue to be a favourable currency for investors to hold. This will leave the NZD in the shade as investors will now get a greater return holding US dollars, rather than New Zealand dollars.

The general perception for the New Zealand dollar is to remain on the weaker side owing to continuing uncertainty over future trade relations between the US and China. With the New Zealand dollar very sensitive to global attitudes to risk and there likely to be continued speculation over the outcome from the Trade Wars.

The general outlook for the pound against the New Zealand dollar is now looking much more favourable, hopefully we will soon see some better rates for clients buying NZD with GBP. The pound however is in a very precarious position and we must also be cautious that rates may well drop too, potentially below 1.90.

If you have a transaction in the future buying or selling New Zealand dollars, there is plenty to be discussing on the rates which could move the market. If you wish to run through or discuss anything relating to the best exchange rates and finalising a strategy to help maximise your deal, please speak to me Jonathan Watson by emailing [email protected].

Thank you for reading and I look forward to hearing from you.