The value of the New Zealand Dollar came crushing down at the hands of the US election yesterday as Donald Trump stoked volatility across the financial markets pushing investors to safeguard their investments in more secure currencies.
Despite an initial spike forcing the New Zealand Dollar value to 73.58 US cents, that rate quickly plummeted to lows of 72.7 US cents.
The Pound also witnessed short term strength during the election, reaching a monthly of 1.7108. Meaning a potential saving of for around £2,500 for a transfer of $200,000 NZD had you been in contact with us over the course of election day.
The interest rate cut from the RBNZ was overshadowed by the shock Trump victory in the US yesterday, is now the best time to buy the New Zealand Dollar?
Yesterday evening, the the New Zealand reserve Bank reduced the official cash rate by 25 base point to 1.75% in a bid to prompt a decline of the exchange rate and drive stable economic growth.
Governor Graeme Wheeler was keen to declare that the volatility from the US election was considered before expressing the new rate however it did not alter their overall plans on capitalising on the recent strength provided by the well performing New Zealand economy and the positive inflation figures posted this week by New Zealands main trade partner China.
Following a very volatile last 24 hours the Pound seems to be gaining a fair amount of short term momentum. For those of you who are New Zealand Dollar buyers, it may be wise to capitalise on these current weekly highs floating over 1.71 before the inflation figures come out of the UK early next week.
To find out more, why not get in touch with one of our brokers on 01494 725 353 to make sure you can make a well informed decision. Alternatively, you can email me here to arrange a transfer.
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