Genesis

Its heading swiftly to $2.40. In the last 24 hours it has dipped from around $2.50ish to about $2.43. Anyone got any comments? It surely stuffs those of us who have money in the UK hoping to bring it here. For those on the way back to the UK with kiwi $$ its a wonderous time!!

I heard at the weekend the reason for the continued strength has something to do with personal savings in NZ being half that of general NZ household debt..ergo money has to be bought in to NZ to fund all that expenditure..the more the kiwi is bought the stronger it gets??

Is anyone prepared to buy at $2.40? It has not been this dire for many moons.

Matewx

Was listening to the news reader on breakfast this morning & thought to myself...

WTF I aint got no clue about what he's saying...

Well, am sorry to say but two hours & 3 coffees later, it still don't make no sense!

Am hopeless...

Stoof

i read somewhere the (relatively) sudden strengthening last week was to do with the sudden increase in value of milk exports? sorry can't remember where or what, so not helpful in the slightest!!!

nero

Yep that is what they said this morning on One news - they blamed the strength of the dollar on Fonterra.

Was hoping to bring some money over - but will have to wait, certainly not changing any at the current rate. Last time we changed money we got 2.87.........but this was a while back

southerner

Don't forget that half of the cross rate is to do with the strength (or not) of the pound. I think there is a perception that NZ economy might come out of recession a bit quicker than Europe and GB, therefore interest rates will increase here first.

Genesis

Surely then the kiwi will continue to gain even more strength as kiwi interest rates rise? We have just decided to commit our UK funds to a 12 month bond as I don't see the $2.70 range returning for a looooooooooong time.

Charismatic

Perhaps, I'm picking 2010/2011 to be important years for New Zealand in terms of economic growth. When companies worldwide start looking for growth oppertunities New Zealand won't be a bad bet, especially if New Zealand develops it's woeful roading system and does a bit of privatisation (which seems to be a dirty word at the moment even though we know we need to do it).

I at least have confidence now that the government now has a desire to make the necessary sacrafices so that our children and grandchildren can enjoy a better quality of life in this amazing country. The optimist about this is obligatory.

adamlt1972

The significant drop in the value of the pound last week also had a lot to do with the Bank of England undertaking its latest bout of Quantative Easing to stimulate the UK economy. Basically they're throwing more money around in the hope that the citizens of the Uk will spend more and save the economy. However, as there are more pounds out there, then the value of those pounds on the international market drops.
As for what happens from here.... I haven't got the foggiest.

Matewx

My banker is offering to open a multicurrency account here in NZ so my € or £ remain in their initial currency until the Xchange rate is good...

It don't make no sense to me...

Is this a good thing to do?

chocolate cake

Do they pay any interest on this though? National Bank have a GBP account which actually pays 0% and they charge you for the privelage so it actually costs you, be better to keep it under the bed!

Certainly GBP rate gets more depressing, problem is that apparently the NZ$ is not far above historic norm against the basket of currencies, so not likely to move much at least in the short term.

Genesis

Depends, alas they offer very little interest. The best I have found is 0.7% with HSBC NZ and you have to tie it up for a year. We have found an account with Allied Irish offshore that gives 3.7% for a year..theres 50k sterling guarantee per account holder and its a bank owned by the Irish Govt. So we will put our wedge there for the next 12 months then look again. Why have it here for a paltry 0.7%??

Genesis

I have heard that the kiwi is unaturally strong. apparently the 10 year median is around 2.7 ish

bevissa65

Arghhhh, getting confused. We will need to be transferring money in the next few weeks. Don't know whether to transfer as little as possible and leave the rest here waiting for rates to go up (maybe) or just say to hell with it and get what paltry rate is available Help!! Bevissa

Jan n Neil

We're in the same position....

Genesis

Personally I would wait. But then I am always wrong about currency.

Having said that the kiwi is so shite at the moment for us with GBP to exchange. It will get back to the $2.60-2.70 range at some juncture.

It has gone from 2.43 yesterday to about 2.47 today. The Reserve Bank is accutely aware that the kiwi's strength is doing us no favours and is prepared (apparently) to drop rates to decrease its value.

I remember a year ago the kiwi peaked hugely overnight at 3!!!!! Just set a market order with HIFX or who ever you use at what rate hope to get (we have to be realistic!!!). They will then buy the kiwis for you even as you sleep automatically when they get to your desired value. It costs nought..no deposits etc...just need to open an account with them..also free.