This New Zealand Dollar report will address the factors that could have an effect on NZD exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 during the high and low points of the previous month.
|Currency Pair||% Change||Difference on £200,000|
Yesterday it was announced that Adrian Orr will take over as the new Governor of the Reserve Bank of New Zealand in March.
Orr has been received as a popular choice with investors believing he won’t veer of the current path of inflation targeting as the main policy. There is however also talk that the new Labour Government could introduce an employment mandate.
This news helped the New Zealand Dollar fall by over 2 cents from the start of the day reaching a two-week low. There has been concerns for the Kiwi’s strength as the US Federal Reserve Bank confirmed they were going to raise rates in December and again multiple times next year, taking the US interest rate higher than New Zealand’s.
The news taking the rate into the low 1.90’s should be received as an opportunity for clients looking to sell NZD to act. In the last 4 months Sterling has made major gains against the New Zealand Dollar and in my opinion the rate will move back above the 2.00 level before the end of January next year. If you’re looking to sell NZ Dollars below that level then this latest movement in the last 14 days has saved you $10,900 when buying £200,000.
This week is quiet on the data front, however should there be any comments from Adrian Orr with regards to his plans then that could create volatility. He’s so far evidently had a positive effect and that could well continue if he was to share his thoughts.
If you don’t currently have access to your funds a forward contract could make sure you’re locking in rates after the recent positive movements. For a small deposit you can guarantee the rate at a level you’re happy paying the remaining balance at a pre-determined point in the future.
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