This New Zealand Dollar report will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer. The table below shows the difference in NZD you would have achieved when buying £200,000 over the last week.
|Currency Pair||% Change||Difference on £200,000|
New Zealand Dollar sellers have been having free reign over the past few months and it look like this could start to slow. There have been interest rate hikes from several nations and hints towards by others, however the Reserve Bank of New Zealand look set to keep control on rates for the considerable future.
There are domestic issues in New Zealand with certain areas having house price fluctuations as foreign investment becoming prominent as interest rates have almost halved since 2015. Furthermore inflation has struggled to reach 1% recently.
The Reserve Bank of New Zealand has seen a strengthening of the NZD which hasn’t extended from strong domestic news and there could be longer term consequences from the strength.
The latest thoughts of the RBNZ Monetary Policy Committee will be revealed at 9pm tomorrow and the Governor of the Bank Graeme Wheeler will deliver a statement. This will be Wheeler’s last monetary statement and there is no expectation he will be going out with a bang.
The RBNZ are thought to be considering relinquishing any hope of an interest rate hike in the near future, with some analysts predicting there may not be a rate hike until 2020. An interest rate hike would massively strengthen a host currency which the New Zealand Dollar is unlikely to need in the short term. There has been over a 20% movement in favour of the NZD against Sterling in the last 18months and slowing that down is vital, especially when Sterling keeps falling the RBNZ have little control over the factors.
If you do have either a long or short term requirement it’s worth being in contact with your broker. There is always the potential for the status quo to change at any time with so much happening across the globe.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
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