Milk prices can have a large impact on the value of the New Zealand Dollar and earlier in the week we had news that whole milk powder (WMP) had climbed by 19.4% which is a huge increase. Dairy prices as a whole rose by 11.4%.
Although this may be bad news for those of you partial to a cup of tea or a lump of cheese with your red wine this is seen as great news for New Zealand Dollar exchange rates.
New Zealand are the largest exporter of WMP and Fonterra, a multinational dairy company owned by 13,000 New Zealand dairy farmers tightened their supply, which no doubt was one of the catalysts for this increase in value.
The higher yielding New Zealand Dollar remains well and truly in fashion at present, and recent unemployment figures showing an improvement did little to stop that trend.
Unemployment in New Zealand fell below 5% for the first time since the financial crisis in 2008 which suggest that the economy in New Zealand is really flying once again.
With the interest rate still remaining strong in New Zealand the New Zealand Dollar is a firm favourite for investors and it does not look like that trend will change any time soon.
With Pound to New Zealand Dollar exchange rates moving by 23 cents over the past 90 days if you had NZD 500,000 to bring back into GBP you would be looking at achieving an extra £35,000 for your money.
If you are in the position where you may need to buy or sell New Zealand Dollars in the near future feel free to contact our trading floor on 01494 725353 or email me here so that we can log your requirements and keep you fully up to date with the latest market movements.
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