The New Zealand Dollar has weakened against all of its most traded peers and looks set to make further declines against the US Dollar as investors favour the US currency over its New Zealand counterpart.
The ‘Kiwi’ has fallen to its lowest level in just under a year as the continuingly resurgent ‘Greenback’ causes the currency to make its dramatic decline.
The New Zealand Manufacturers and Exporters Association estimates that a 1% increase in exchange rate has a net annual cost to exporters of $200 million.
But after a 9.7% fall since April, importers will be feeling the pinch, said Peter Cavanaugh at Bancorp, a financial advisory services firm. “It will have blown just about every importer’s budget rates out of the water,” Cavanaugh said. “We are in a period where the only certainty is volatility,” he said.
New Zealand Dollar to US Dollar Exchange Rate currently in the region of 0.7762
The ‘Kiwi’ is not far from the key point of US78 cents which if it breaks though could rapidly see it decline further to around US72 cents.
“If it breaks through that, it will go a lot further,” said Imre Speizer, senior market strategist at Westpac. “We are on the cusp of something potentially quite dreadful for the New Zealand Dollar, but it will be good for exporters,” Speizer said.
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7762
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5861
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5000
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8323
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2882
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 2.000
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7061
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2013
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2568
(Correct as of 13:55pm GMT)
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