NZ$ on the move
 

Been a long time since we had much fluctuation to talk of but things they are a changing by the looks of activity today; we reached the heady heights of 2.10 to the pound.

I think that's the highest I have seen in the past two years.

RBNZ in $521m currency intervention | Stuff.co.nz

http://www.nzherald.co.nz/business/n...ectid=11333355

Re: NZ$ on the move
 

Awful timing as i'm just about to visit the Uk and need to ship some $$ over for spending!

Re: NZ$ on the move
 

I know exactly what has made this happen.

I finally bit the bullet and transferred a little cash gift money from the UK to NZ a couple of weeks ago.

Typical !

Re: NZ$ on the move
 

You and me both Dennis. I nearly had kittens when I saw it had gone to 0.48 GBP to the dollar. Last time I looked it was 0.52.

Re: NZ$ on the move
 

anyone got a serious ideas of whats driving it??

Re: NZ$ on the move
 

I read that it's been active intervention to weaken it because it's percieved as over-valued.

Re: NZ$ on the move
 

Yeah there's been intervention but it can only have a short effect. I can't see the NZ$ finding it's real value until NZ Interest Rates balance out with the rest of the world.

Raising interest rates by a full percentage point this year in contrast to other developed countries has simply re-inforced the high value of the NZ$ dollar. The banks and NZ reserve had been forecasting even more interest rises earlier in the year (and frightening borrowers onto fixed rates), but it's clear that isn't going to happen.

NZ growth has been down two things, Christchurch rebuild and booming dairy prices. The latter since reversed, and the former will be a one off.

Re: NZ$ on the move
 

Shit timing. I still have a loan back in uk up in 7 months time :( so we need to transfer money back often also I just changed 5 grand last month from GNP to nzd boooo

Re: NZ$ on the move
 

Do you think changing it now would be wise , or can you see the nzd springing back a little in the next month?

Re: NZ$ on the move
 

From my (very limited) understanding they want it to continue to drop in value. So if I was gonna hedge my bets I'd say it won't go up again in the short term.

Re: NZ$ on the move
 

There are two big factors here.

1) The NZ government and many businesses are saying the NZD is over valued and making exports from NZ expensive. So much so that they got involved by trying to forcibly devalue the currency.

2) The UK Bank of England Governor has indicated that interest rates in the UK are likely to start rising early next year.

3) The NZ Reserve said that interest rates should be staying where they are for the forseeable future.

With all of this considered, I expect to see the rate rise to around 2.2 - 2.4 by June next year. (Perfect timing for us as we are selling up in the UK!)