Best Pound to New Zealand Dollar Exchange Rate in Four Months on RBNZ - Forecast GBP/NZD to Rise

Modified: Thursday, 29 January 2015 22:08 BST - Written by John Cameron

STORY LINK Best Pound to New Zealand Dollar Exchange Rate in Four Months on RBNZ - Forecast GBP/NZD to Rise

Currnecy News Presents Our Pound to NZ Dollar Exchange Rate Forecast

Last night’s Asian session brought a significant development from New Zealand. Although the nation’s central bank announced, as per analysts’ expectations, that it would be holding its key interest rate at its current level of 3.50%, it was the Reserve Bank of New Zealand’s post-decision commentary which hit the Kiwi Dollar hard.

The Pound to New Zealand Dollar exchange rate is +0.27 pct higher with a conversion rate of 1 GBP equals 2.07342 NZD.

New Zealand Could Cut Interest Rates

In recent months, the RBNZ has consistently suggested that its next policy move will be an interest rate hike, but last night’s commentary brought the emergence of a distinctly altered tone.

The Bank’s Governor Graeme Wheeler suggested that, ‘future interest rate adjustments, either up or down, will depend on the emerging flow of economic data.’

The move towards a ‘wait and see’ approach caused investors to shift out of Kiwi-denominated assets, with investors pricing-in a high likelihood that the next move will be a cut given the continued fall in global oil prices and the reduction in analysts’ forecasts for global growth.

The Euro to New Zealand Dollar (EUR/NZD) exchange rate is +1.07 pct higher with a conversion rate of 1 EUR = 1.55762.

Pound to New Zealand Dollar Exchange Rate Hits 4-Month High

The fall-out of the shock RBNZ action saw the Pound Sterling New Zealand Dollar exchange rate climb to its highest level since last September during today’s session; the pair touched off 2.0822 during this morning’s European session and analysts forecast that there could be further gains to come for the pair.

The ultimate target if this forward momentum persists for GBP NZD, comes at last September’s high of 2.1058.

The New Zealand Dollar to Australian Dollar rate today is converting +0.89 per cent higher at 0.93609 NZD/AUD.

Federal Reserve Piles Pressure on NZD

Meanwhile, the forward surge for GBP NZD was provided with further fuel by comments from the US Federal Reserve last night.

The Fed triggered a pronounced attack of the jitters amongst the global investment community by confirming that it is monitoring ‘international developments’ closely.

These words, combined with the fact that the Fed confirmed that it will continue to adopt a ‘patient’ attitude towards a potential tightening of its monetary policy, increased market participants’ concerns that the global economic recovery is hitting a flat patch.

Analysts forecast that the high-yielding New Zealand Dollar could incur further losses against Sterling should this prove to be the case.

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