Posted by Allison on 25 July 2012, 17:19
The opening exchange rate for the pound against the New Zealand, or Kiwi, dollar at the beginning of June was 2.0551. The exchange rate between these two countries is always typically larger than that against the Aussie dollar, which we have reviewed elsewhere this month. But with that said the pattern between the two is often very similar, so perhaps this will be borne out with the situation here this month.
The first week, such as it was at only a day long, finished down a considerable amount, and it ended on 2.0400 as a result. But there was worse to come as the first full week unfolded for the currency. Here the falls were slow and steady for the pound and it meant the week end closing rate was a lower 2.0191. It seemed as if it might be just a matter of time before the exchange rate fell below the two dollar mark. Perhaps it was not a question of if but when, and by how much.
The day it dropped beneath that rate was the 13th June – unlucky for some and certainly unlucky for those who wanted to get a good exchange rate. The closing rate on that day was 1.9960. The question now was whether the rate would bounce back for the pound or whether this was the first step below two dollars, and one that would result in several more losses as well.
Unfortunately it looked as if the latter possibility would turn out to be true. That same week, the pound closed Friday night on 1.9763, giving us little hope that it would bounce back at any point in the near future. It fell to 1.9689 on the 19th before recovering slightly to 1.9761 the next day. This toing and froing went on for a couple of days before the week ended on 1.9769.
If we thought the worst was over we had not yet seen the end of the month. The pound fell as far as 1.9516 on the last day of June, making us hope the best was yet to come as the pound went into July.