Kiwi hits fresh high against the pound

(File)
(File)

The timing is great for anyone heading to the UK. But it is not looking quite so good if you are about to go to the United States.

The New Zealand dollar has hit a fresh 40 year high against the British pound, but it has fallen to a new two month low against the US dollar.

The kiwi is trading at just over 58 British pence this morning. That is the highest it has been since November 1976.

Back in November 1976 the kiwi traded at 59.70 pence on the 1st of the month and had fallen to 54.82 at the close of trading on the 30th.

The New Zealand dollar was devalued by 2.7 percent on November 29 1976, falling from 59.01 pence on the 28th to 54.82 pence on the 30th. Its high for the month against the Pound was 59.70 pence on November 2.

The British pound is being sold by traders who are worried about the prospects for the UK economy in the wake of the Brexit vote.

But while the kiwi is rising against the pound it is falling against other major currencies.

The New Zealand dollar has fallen by over one percent in 24 hours against the US dollar, trading at 70.56 US cents.

The US dollar is rising because investors increasingly think that Democratic candidate Hillary Clinton will win the US presidential contest.

They see a victory by Hillary Clinton as being more supportive to the US economy. Investors think that would leave more room for the Federal Reserve to hike interest rates. Higher deposit rates make the US dollar look more attractive.

At the same time investors believe the chances are increasing that New Zealand's Reserve Bank will cut its Official Cash Rate next month.

The kiwi has fallen by around 0.2 percent overnight to 93.67 Australian cents.

It is down by just over one percent to 72.99 Japanese yen and it is down by 0.3 percent to 63.86 Euro cents.

Newshub.

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