The New Zealand Dollar continues to strengthen against a number of major currencies, specifically Sterling due mostly to the upcoming EU referendum. You can view live exchange rates at any time from our live exchange rates page.

NZD GBP at 13 Month High

The New Zealand dollar has continued to strengthen against most currencies over the last month with a healthy 8% climb for NZD GBP in particular and taking levels to a 13 month high. For this pair it has been largely a sterling story with the looming UK referendum on EU membership which is keeping the pressure on the pound. However signals from the Reserve Bank of New Zealand (RBNZ) have contributed to the dollar’s recent rally. The RBNZ chose to not cut interest rates at the June meeting and cited an overheating housing market as a concern. The reality now is that any interest rates cuts are off for the time being anyway and this has been reflected in the recent rise in the kiwi.

For anyone selling New Zealand dollars there is currently an excellent opportunity to sell and depending on how things go with the referendum next week then these kind of levels may not be available for much longer. In the run up to the referendum though there may still be more to be seen from this rally especially considering the Leave campaign is gathering momentum.

New Zealand Dollar Ahead of US Fed Meeting

The uncertainty surrounding the US Fed decision this evening has also been playing its part to help strengthen the dollar. What happens tonight at the Fed meeting is also key for the New Zealand dollar. Whilst no change is expected from the Fed this evening any suggestion that there will still be a hike later in the year, possibly in the Autumn, should see the US dollar strengthen. In this instance the New Zealand dollar could lose some of its recent gains as a result, that is if the Fed make such noises.

This evening also sees New Zealand GDP numbers so the combination of these important releases should create some new direction for the dollar.

NZDGBP rates are at a 13 month high and those looking to sell Dollars may wish to do so before the EU referendum results. Email me here if you would like to make an inquiry.

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