Sly

At the time of this post - £1 = $2.45..????????????????? :scared:
Is anyone in the same position as us in that we are moving to NZ very soon and are very alarmed at this current rate?
Is there anyone out there with a crystal ball, coz when we were first looking at house prices we had enough left over for this
http://www.boatsforsalenz.com/photo_gallery.htm
and now all we can afford is this
http://www.incept.co.nz/K37D.htm
Basically we need a genuis out there who can predict the future. Is the NZ Dollar going to drop soon or will I have to stop eating Lobster Thermidor?

turkeytickler

It is generally seen as being overvalued at present and due for a correction... when that will come i dont know since interest rates are still likely to rise to curb consumer spending....

uk+kiwi

Now if anyone really had a clue they probably wouldn't be on this forum as they'd have made their millions on currency speculation and be enjoying the fruits of their hard earned labour on some tropical island paradise. (NZ??)

Seriously, consensus seems to be that the dollar is due for correction but as to the timing - anyone's guess. Some have said within a year, not too sure. I would guess at it being closer to $2.7 by the end of next year, based on nothing economical at all!! That's my completely personal guess, any more takers?

And if it hits $3 at any time, I will be buying some NZD.

turkeytickler

it was pretty stable at £1/$3.5 a few years ago but has crept progressivly down since then..... although i dont know if this is the norm and the last few years have been an anomoly, but im keeping my UK income in the UK for now

silvermuse

i hope the dollar gets stronger. that means i wont need to save up as much for my visit back home.
but i also hope it gets weaker for those of u moving out here or those who are still using their pounds.

livewire

I reckon the real agenda with the NZ dollar is for it to gain parity with the Australian dollar.

It would make trade within the Pacfic countries a lot easier. Perhaps we'll even see the Oceania equivalent of the Euro in the coming years, wonder what they'd call it.................

turkeytickler

the kangiwi?

livewire

NZ Climber

Absolutely, it's almost 1 for 1 now and asctually the same currency thing has been suggested a short while ago. The currency of choice of course was the Aussie Dollar - chosen by the Aussies. At the time the Aussie economy was (and pretty much still is) in the topilet so the Kiwis told them (rightly IMHO) to get stuffed.

CWEMM02

There was the OECD report (I think it was OECD, it is on my email at work) that was released today. The report showed NZ growth slowing from 4.4% this year to 2.8 % next year. It also looked at relative cost of housing and found that only the Netherlands had a level of mortgage to income than New Zealand. I think it was 129%. The report is suggesting a soft landing for the New Zealand economy and also agrees with Bollard that house prices may indeed fall in the near future. As I trade some currency in my current job I do get lots of information sent my way. Exchange rates are being driven by spreads in interest rates more than anything else at the moment. As you have the likelihood of increased rates in NZ while steady to lower rates in the UK, it is likely that over the next 12 months you will not see much of a change in the GBP/NZ rates. Rates in New Zealand are not expected to decline until well into next year. I feel a little luckier in that my Canadian dollars are likely to grow in value against NZD over the next 12 months due to sticky oil prices, a strong trade surplus. Canada also is the only G7 country with a fiscal surplus too. I would think though that converting GPB to NZD would not be so bad if you watch for some dips. Then put the funds into some high yeilding bonds I have been told about by a financial planner in Christchurch. Use the funds to offset rent and then you live in the house for less than the annual interest on the mortgage while you wait for a property correction and lower mortgage rates.

Best of luck

Michael

lapsed kiwi

I just had to change a large amount of £ to $ and got 2.43 - ouch! The trader reckoned it's liklely to bottom out at about 2.4 and there will be a correction some time next year - 2nd or 3rd quarter. So it may be worth hanging on if you can - we want to buy a house so had to bite the bullet.

Nice Guy

Hmmmmmmmm............

Interesting (excuse the pun!).......my prophesy, £1 = 2 NZ$ by this time next year and with NZ interest rates approaching, if not in, double figures.

But remember I am by nature a misery and also have a healthy liberal dose of cynicism.

uk+kiwi

I can't remember the dollar being as strong as 2.45 in the 15 years since I have been with my kiwi now husband (that's not to say it hasn't been though). I can remember 2.7-3 being the norm and yes sadly it has strengthened tremendously over the past 2 years when it was at $3.

Lord of the bl**dy Rings has an awful lot to answer to in my opinion!

turkeytickler

yeah - next time i see a hobbit im gonna throw rocks at it!

chez

May 1996 2.20NZ to the pound