Sterling has posted some strong gains against the New Zealand Dollar in recent weeks pushing through the 1.93 level and reaching its highest level since July 2016. In fact the pound has now rallied nearly 10 cents or just over 5% in the last two weeks creating some much better buying opportunities against the Kiwi Dollar.
Why has the NZD weakened?
A combination of sterling strength and NZD weakness has caused this recent move. The pound is starting to see some gains against a number of currencies on rumours that the Bank of England will look to raise interest rates on Thursday and the Kiwi has been steadily devaluing post the elections held in New Zealand at the end of September.
Following the elections New Zealand PM has threatened to put significant bans on the amount of foreign investment coming into the country, particularly in the property market, something that her opposition has argued will have a significant impact on the economy. To compound this unemployment levels are high and there are rumours circulating that the Reserve Bank of New Zealand are looking to cut interest rates.
All these points have led to a significant devaluation in the currency and some great opportunities if you are looking to transfer money to New Zealand. Should you need to make a transfer in the coming weeks or months and yo would like assistance in maximising your your transfer then please get in touch. We work for a specialist foreign exchange broker with access to commercial rates of exchange.
Labels: GBP/NZD, Kiwi, New Zealand, New Zealand Dollar, Pound, RBNZ, Sterling
