One particular factor affecting the NZD is the price of dairy. New Zealand is the world’s biggest exporter of whole milk powder. So if milk prices are on the rise, the New Zealand economy is likely to improve and traders may price up the currency in anticipation.
NZD to USD – Convert New Zealand Dollars to US Dollars
Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international https://forex-review.net/ money transfers. New Zealand markets are the first to open a new trading day, and banks and traders may at times use this fact to position trades in anticipation of the coming day’s events.
- Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.
- We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances.
- NZD also sees use in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.
How to convert New Zealand dollars to US dollars
It took another 30 years before the Reserve Bank replaced the currency of pounds, shillings, and pence with actual dollars and cents. In the year 1967 alone, the Bank printed 27 million new banknotes and 165 million new coins. Such trades are for risk-seeking investors and tend to be closed out when investors become risk averse.
Popular US Dollar (USD) Pairings
Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting. In addition, the new polymer composition has increased the longevity of the note. In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes.
Evidence of this was prevalent during the 2008 financial crisis when the NZD fell close to 50% against the Japanese yen. As volatility rose, investors unwound these carry trades, and the NZD was one of many high-yielding currencies that fell during 2008 and 2009. The New Zealand dollar is considered a carry trade currency in that it is a relatively high yielding currency. Because of this, investors will often buy the NZD and fund it with a lower yielding currency such as the Japanese yen or the Swiss franc. NZD/USD is the abbreviation for the New Zealand dollar and U.S. dollar currency pair.
Create a chart for any currency pair in the world to see their currency history. These currency charts use live mid-market rates, are easy to use, and are very reliable. These are the average exchange rates of these two currencies for the last 30 and 90 days.
The original notes had a variety of designs, including that of a kiwi, the nation’s Coat of Arms, Maori King Tawhiao, and Fiordland’s Mitre Peak. The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity. Wise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference , for the issuing of electronic money.
New Zealand currency has had a long history of over 160 years. In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even legal currency. However, nothing was made official until 1933, when New Zealand issued their first official coins, based on the British pound, shilling, and pence. The New Zealand dollar (NZD) is the official currency of New Zealand.
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts city index review or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material.
Compare our rate and fee with our competitors and see the difference for yourself. Decimalization of the NZD (division into 100 cents) took place in 1967 when the New Zealand dollar replaced the New Zealand pound at a rate of two dollars to one pound. Initially pegged to the United States dollar, NZD went through a series of changes in the fixed exchange rate until March of 1985, when the currency was allowed to float freely. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.
These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day periods. The strength of a currency tends to fluctuate so the strength of the NZD may not always be so strong. However, overall, NZD is considered a stable currency due to the strength of the New Zealand economy and its outlook.
NZD is one of the most traded currencies in the world, making it a liquid currency in forex markets. You can send a variety of international currencies to multiple countries https://forexbroker-listing.com/fxpcm/ reliably, quickly, and safely, and at a rate cheaper than most banks. Check live rates, send money securely, set rate alerts, receive notifications and more.
The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal. The NZD/USD is also affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in relation to each other and other currencies. The interest rate differential between the Reserve Bank of New Zealand and the U.S.