Welcome to Pure FX’s latest update of the pound to New Zealand dollar interbank exchange rate.
Sterling jumps versus the NZ dollar!
The pound to New Zealand dollar interbank exchange rate has hit 1.8324 today, its highest in 8.5 months, or since August 3rd last year.
What’s more, looking ahead, sterling could strengthen further versus the kiwi dollar. Here are 5 reasons why:
1. The price of commodities like oil and iron ore fell -1.4% this week, according to the latest Thomson Reuters/CoreCommodity CRB index.
This may weaken the New Zealand dollar, because the kiwi dollar is a “commodity currency”, meaning that its value rises and falls with the price of commodities.
2. Consumer confidence in New Zealand fell -3.5 points in March, to 121.7, according to the latest ANZ-Roy Morgan consumer confidence index.
This could drag down the kiwi dollar, because if New Zealanders feel less confident in their finances, they may spend less, slowing New Zealand’s economy.
3. US Dallas Federal Reserve president Robert Kaplan said yesterday that lifting America’s interest rates 3 times this year is a “good baseline”.
This may weigh on the NZ dollar, because if the US Federal Reserve hikes interest rates, this eats into New Zealand’s higher interest rate advantage.
4. New Zealand’s solid economic growth is expected to “tail off” this year, according to economists.
This could pull down the New Zealand dollar, because if New Zealand’s GDP growth slows, this makes investing in New Zealand less attractive.
5. At present, the USA is facing off with North Korea, France’s presidential election begins this Sunday, while the UK has just called a snap election too.
This may weaken the NZ dollar, because these are “risk events” that may lead investors to favour larger “safe haven” economies, like the USA or Japan.
With all this in mind, the pound to New Zealand dollar interbank exchange rate may soon rise above its 8.5-month high!
Keep up to date
We’ll tell you when the pound strengthens against the New Zealand dollar.
Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email email@example.com.