New Zealand Exchange Rate

New Zealand

New Zealand: New Zealand Dollar strengthens, reaching multi-year high

July 16, 2014

The New Zealand dollar (NZD) is continuing on its upward trajectory against the U.S. dollar (USD), reflecting the country’s strong economic performance during recent quarters and the Reserve Bank of New Zealand’s (RBNZ) decision to continue its interest rate tightening cycle. In recent months, the kiwi dollar has gained strength. It reached a multi-year high on 9 July when the currency traded at 0.88 USD per NZD, which was 3.9% stronger than the value recorded a month earlier and 12.3% stronger than the exchange rate tallied in the same month last year.

Meanwhile, there are concerns that the strong kiwi dollar is a headwind for the exports industry, particularly as New Zealand’s recent strong economic performance is largely built on exports to China, a main destination of New Zealand’s dairy products. Until several months ago, the negative impact of the high New Zealand dollar on exports was largely compensated for by record-high international agricultural commodity prices; however, prices fell significantly during the past months and they may even decline further going forward.

FocusEconomics Consensus Forecast panelists see the New Zealand dollar trading at 0.83 USD per NZD at the end of 2014. For 2015, panelists see the exchange rate closing the year at 0.81 USD per NZD.


Author: Teresa Kersting, Economist

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New Zealand Exchange Rate Chart


New Zealand Exchange Rate July 2014 0

Note: Exchange rate USD to NZD.
Source: Reserve Bank of New Zealand and FocusEconomics calculations.


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