Effects of UK interest on NZ Dollar

Kuffs_2

Does any one know how a rise in UK interest rates effect exchange rates, such as the NZ $.

SammyD_2

Ahah, another watcher of that exchange rate. Theoretically, it should mean the difference between the interest rates closes, and so the dollar might drop. There is other stuff around that suggests that the dollar might drop back again - hubby saw an article tonight saying something about Aussie job figures.

I dont know what your plans are, or why you are interested, but we have been watching the dollar since it was at its highs in about August 2005, and have managed to switch some of our money at favourable rates as it has gone down (and up again...) over the course of this year. The HIFX website has lots of useful advice if you are interested in forward contracts or things like that.

Xbigman

As UK interest rates rise the UK becomes a more attractive place to invest in and the pound should rise slightly vrs interest rate stable economies.

So wait and see for a few months and (in theory) the rate should become more favourable. Then its a case of timing your move.

There are profesional companies who will do this for you if the transaction is big enough, like over £100,000, but I don't know any off the top of my head.
Regards



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