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British Pound Finishes On A High Against The New Zealand Dollar

1 April 2009, 16:35

You don't have to look far to read a lot of negative content about the pound at the moment. Take a look at this article from the BBC website, for example – you can find it here.

This shows that the British pound has really struggled of late. So much so in fact that even the Foreign Office is having trouble getting all its work done.

But is the news that bad all over the world? We know the pound has had a bad time against the US dollar and the Euro of late, but does that also extend to every other country you can think of?

Of course it doesn't. And in fact, there is one country in particular where the pound has performed rather well during January. That country is New Zealand.

Now if you have been following the exchange rates on your currency converter of late, you will know that things can be a bit dramatic when it comes to these two currencies. For example, on New Year's Day the exchange rate was 2.5397 New Zealand dollars to the pound. That dropped to 2.4941 the very next day. And exactly a week after New Year's Day, the pound could get an additional four and a half cents to its exchange rate than it could the week before.

Those are the types of changes we often see between these two currencies. And that is the reason why these two are well worth keeping an eye on – especially if you like your Forex!

The high and low points in January were miles away from each other in currency terms. The lowest point occurred on the 6th of the month, when the pound grabbed just $ 2.4941 New Zealand dollars. Anyone waiting to exchange their cash and head off on holiday over there would have done well to wait until the very end of the month.

That's because the exchange rate had by then gone up to 2.8142. That's a full thirty two cents more for your money than you would have got just three and a half weeks earlier.

But the trouble with these two is that things could well change dramatically once more as February gets underway. It's still a good result for the pound though, and with such negative reviews virtually everywhere else, it is always nice to see a positive story that sheds better light on our currency. It's also good news if you are trying to figure out where you can go for a foreign holiday where the pound is still worth exchanging.

So is this performance set to be repeated in other countries? Perhaps that is too far to go, but it is certainly a nice step in the right direction. The powers that be at the Foreign Office will probably be happy to do their duty if it means dealing with the New Zealand dollar. It might still be very different as far as the US dollar and Euro are concerned though.

Keep an eye on the New Zealand dollar as time goes by however. You will see the pattern of jumping up and down against the pound continue – it seems almost inevitable that these two are quite a fiery match for each other.

 

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