Welcome to Pure FX's latest update of the pound to New Zealand dollar interbank exchange rate!
Sterling strengthens versus the kiwi! The pound to New Zealand dollar interbank exchange rate has hit 1.9174 today. This is its highest in over 1 week, or since January 29th.
By contrast, back on February 6th, sterling was as low as 1.8768 against the kiwi. So it's since risen by +2.16%, or over +4 cents!
To put this into context for you, at today's interbank exchange rate, £250,000 would be worth NZ$479,350. That's +NZ$10,150 more than on February 6th!
So if you're a UK citizen buying a property in Auckland or Wellington, this may help you to transfer money to New Zealand.
Pound to NZ Dollar Rate Rises, as Kiwi Joblessness Climbs
The pound to New Zealand dollar interbank exchange rate has reached this 1-week high, because New Zealand's unemployment rate has risen.
Kiwi joblessness climbed by +0.3% to 4.3% between October and December last year, said Statistics New Zealand (SNZ) yesterday.
This is well above financial market forecasts for a rise to +4.1%. Moreover, New Zealand's labour force participation rate also fell, by -0.2% to 70.9%.
This tells us that more New Zealand citizens left the job market late last year. So this data has strengthened the pound versus New Zealand dollar!
GBP vs NZD Rate Strengthens, as RBNZ Less Likely to Hike
Furthermore, sterling has also jumped versus the kiwi dollar, because with New Zealand unemployment rising, the Reserve Bank of New Zealand (RBNZ) now looks less likely to hike interest rates sooner.
According to financial markets, the RBNZ will now wait until mid-2020 to lift borrowing costs above their current 1.75%. This is from previous estimates for a hike in the 2nd half of 2019.
This is because, with fewer New Zealanders in work, the central bank may keep interest rates low, to support job creation and the economy.
Thus, this has boosted the pound to New Zealand dollar rate!
Sterling vs Kiwi Climbs, as NZ Vulnerable to Global Slowdown
Moreover, the pound to New Zealand dollar interbank exchange rate has touched this 1-week high, because New Zealand's finance minister has warned that New Zealand is vulnerable to a slowdown in the global economy.
Speaking recently, kiwi finmin Grant Robertson warned that "there is a heightened sense of risk from [global conditions]" for New Zealand.
These include China's slowing economy, US President Donald Trump's trade war with Beijing, plus the economy slowdown in the Eurozone.
This may weigh on New Zealand's economy, thereby lifting sterling versus the kiwi!
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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.