Currency carnage expected in wake of US election
November 10 2016
CURRENCY CARNAGE EXPECTED IN WAKE OF US ELECTION
Kiwi travellers are being warned to expect major currency volatility today as global and local markets react to the unexpected win by Donald Trump in the US Federal Election.
Daniel Jackson, country manager of Travel Money NZ said, “We’ve been warning our customers about currency volatility and the early reaction by global markets resulted in a decrease in the value of the Kiwi Dollar before results were even confirmed.”
The Kiwi fell to 74.81 yen as at 6pm in Wellington from 76.53 yen late yesterday. Against the US dollar the Kiwi dropped to US72.8c from US73.24c yesterday. In Australia, where the markets had longer to react to election results, the impact was even stronger, with the Aussie Dollar dropping not only against the US Dollar, but also against the British Pound and the Euro.
Mr Jackson confirms that as election results rolled in, customer enquiry in their 20 specialist foreign exchange stores increased steadily. “Sales volumes were markedly higher late in the day and our website traffic indicates a high level of customer concern and interest. We are expecting continued volatility in markets through the day as markets react, and further changes in exchange rates”.
Travel Money NZ also reported a major increase in demand for Japanese Yen which is often a safe haven for currency in times of volatility.
A change in exchange rates, can have a real impact on overseas spending money, which Travel Money NZ, New Zealand’s largest specialist foreign currency retailer, says is often a last minute purchase consideration by travellers.
Travel Money NZ advises Kiwis travelling soon to monitor market changes, review their currency needs and individual situations and decide whether they should lock in their exchange rate now.
“We’d like to reassure customers that at the moment supplies of US Dollars in our stores are good, but to keep in mind the high levels of demand, “ said Mr Jackson.
Travel Money NZ advises customers that their rates are guaranteed for advance orders in-store or online. A prepaid travel money card can have exchange rates locked in on up to 9 different currencies.
“We’re also reminding customers that they can use a Multi-currency Cash Passport™ and lock in your rate online and load it with US dollars to use later,” Mr Jackson said.
“We also don’t charge fees or commissions on foreign cash transactions in store and online.”
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About Travel Money NZ
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.