Now's A Good Time to Buy Kiwi Dollars

But It May Not Last!

Peter Lavelle

If you plan to visit or emigrate to New Zealand, you'll doubtless want the highest kiwi dollar total you can find. So what's in store for the New Zealand dollar? Find out here!

Right now, you're in luck if you plan to visit or emigrate to New Zealand.

This is because the kiwi dollar is closest to its cheapest in 12 months, against a basket of currencies including the US dollar and British pound.

$9, c.1982 (on black)

Why is this the case? Well, strange as it seems, it's got little to do with New Zealand, and a whole lot to do with the United States.

Over in America, the Federal Reserve is thinking of bringing its stimulus program to an end, the program by which waves of money have arrived to New Zealand, and lifted the value of the kiwi.

Without that American money, the kiwi dollar is now deflating like an old hot air balloon.

But, as I mention, that makes it great value if you plan to emigrate or visit New Zealand.

However, looking ahead, the New Zealand dollar may not remain such good value for long. In fact, it could soon rise sharply.

This is because New Zealand's economy is going at top gear, at a time when economies around the world are struggling.

For instance, between March and June this year, kiwi manufacturers produced more than at any time since 2004.

Meanwhile, confidence among New Zealand shoppers is at its highest since 2010 right now.

Given that, the kiwi dollar could soon pick up, which would make visiting or emigrating to New Zealand more expensive.

That's something to keep in mind!

About the Author

Peter Lavelle is an economist at foreign exchange broker Pure FX.

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