Don't Be Caught by Possible US Election Currency Volatility
November 8 2016
Travellers Warned Not to Be Caught Out in Possible US Election Currency Volatility
Kiwi travellers are being urged to avoid exchange rate uncertainty and possible exchange rate volatility by considering their currency needs ahead of the US Federal Election which is happening overnight.
Daniel Jackson, Travel Money NZ country manager says, “We’ve seen a mix of speculation amongst economic forecasters around possible outcomes. Some forecasters see downsides of a Trump win on the New Zealand stock market, and the value of the NZD, as well as speculation about possible “relief rallies” on US markets around a Clinton victory.”
“US currency has long been viewed as an investor safe haven and whilst the New Zealand to US dollar exchange rate has been relatively stable up to now, learnings from the Brexit vote earlier in the year suggest we may see some volatility in the market after the results are announced. Particularly under the scenario that this is a closer race than expected, and also that it’s possible a victor may not be apparent for some time.”
A change in exchange rates can have a real impact on overseas spending money, which Travel Money NZ says is often a last minute purchase consideration by travellers.
“We know that most of our customers book their flights months in advance but wait until the day they travel to purchase their foreign currency, this can cost in the long run. Exchange rates can see a lot of movement so it’s a good idea for travellers to monitor the market and purchase when the rates are in their favour.”
“My advice for anyone travelling soon, and especially to the US over the next couple of months, would be to review their currency needs and individual situations and decide whether they should lock in their exchange rate now.”
Travel Money NZ advises customers that should they wish to buy currency today their rates are guaranteed for advance orders in-store or online, even if the physical cash isn’t collected until a later date. A prepaid travel money card can also have exchange rates locked in on up to 10 different currencies.
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Travel Money NZ is the foreign currency exchange division of Flight Centre Travel Group (ASX:FLT). It is New Zealand’s fastest-growing foreign currency retailer, with more than 140 stores across Australia and New Zealand and the US and currently operates 18 stores in NZ. Travel MoneyNZ buys and sells foreign currency with more than 50 currencies in store, and offers international cash transfers with MoneyGram and GlobalSend.