Moneycorp New Zealand dollar update The Kiwi strengthened by a cent and a quarter against the pound and by one cent against the US dollar. Against the Australian dollar it was up by three quarters of a cent. In a week during which attention was focused mainly on the soaring euro, the NZ economic news was not compelling enough to whet investors' appetite. Building permits fell by -5.4% in November. The trade deficit widened, having been expected to narrow. And that was it. On their own the NZ ecostats would have been insufficient to take the NZ dollar higher. But the Kiwi and the Aussie were both salvaged by news from Japan. The new government there announced another package of stimulus, this one worth ¥10.3 trillion (£72bn). Investors believed it would mean more orders for New Zealand's exports.
Moneycorp euro update The euro had a great week. It climbed two and a half cents higher against the pound – 2% – and rose by three and a half US cents. It was up by five and a half Japanese yen on the week and was by far the best-performing major currency. Various factors worked in its favour. Every Euroland confidence measure was an improvement on its predecessor (even if most were still negative). Investors queued round the block to buy the first issue of debt by the European Stability Mechanism (ESM) and were even prepared to accept a negative rate of interest on their investment. The European Central Bank president was optimistic about a return to economic growth this year and spoke of the "positive contagion" that is helping to deflate the peripheral debt crisis. Sig. Draghi's comment encapsulated the new attitude to the euro. Investors once again believe in the single currency and their buying could take it even higher.
'Top tips to protect your spending power'
1) Shop around Look for the best deal, as you would for your car insurance. Don’t assume that your high street bank will offer you the best deal. Currency specialists will probably save you money by offering you better rates of exchange and lower transfer fees. Savings of 2% and more on exchange rates and £10 to £20 per transfer on transfer fees are very realistic (£120 to £240 per year if you’re making monthly payments).
2) Plan ahead Currency markets fluctuate constantly and if you simply wait until you have to make a payment, you will get the exchange rate of the day and will have run the risk of markets turning against you. If 6 months ago you knew you had to make a payment in Euros around this time but had done nothing to secure your exchange rate, the payment would now cost you 20% more.
3) Get expert guidance Currency market expertise is no longer restricted to bank trading floors. Currency specialists have teams of trained and qualified dealers who can help consumers and SMEs alike through the minefields that are the currency markets.
4) Don’t get stung by overseas banks Be aware that overseas banks can often charge handling fees just for receiving your money. This can amount to up to 1% of the value of your transfer and can soon add up dependent on the amount of money you are sending or the regularity of your transfers. You can possibly negotiate with the receiving bank before sending your funds or currency specialists can also help.
5) Consolidate your payments If you are sending money regularly, think about reducing the number of payments that you make and increasing the size of these payments. This will reduce transfer fees. However, you should also take steps to protect yourself from adverse exchange rate movements.
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Information supplied by Moneycorp, 100 Brompton Road, London, SW3 1ER Web: www.moneycorp.com Tel: +44 (0)20 7589 3000 Worldwide copyright © TTT Moneycorp Limited 2008. ________________________________________
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