How Many New Zealand Dollars To The Euro

Introduction

New Zealand Dollars (NZD) is the currency of New Zealand and it is the official currency used for buying and selling goods in New Zealand. With the rise of global markets and currency fluctuations, understanding the exchange rate between NZD and other currencies is essential for traders, travelers, and exchange traders. In this article, we’ll be looking at the NZD exchange rate with the Euro (EUR).

Exchange Rate History

The exchange rate between NZD and EUR is determined by the markets and the demand and supply of both respective currencies. Over the past five years, the NZD/EUR exchange rate has not seen major fluctuations. In March of 2015, 1 NZD traded for 0.64135 EUR and five years later in March 2020, 1 NZD traded for 0.59296 EUR. The difference from March 2015 to March 2020 indicates a drop in the NZD to EUR exchange rate of about 8%.

Current NZD/EUR Exchange Rate

Currently, 1 NZD is equal to 0.57558 EUR as of March 2020. The return for a single NZD is fairly low as compared to other major currencies. For comparison, 1 GBP is equal to 1.17 EUR, 1 USD is equal to 0.9249 EUR, 1 CAD is equal to 0.7168 EUR and 1 AUD is equal to 0.6355 EUR.

Factors Affecting Exchange Rates

The exchange rate is mainly driven by the relative supply and demand for the currencies of each nation. It is also affected by the Reserve Bank of New Zealand’s (RBNZ) interest rate policies, global economic conditions and political events. For instance, as the RBNZ cuts interest rates, the NZD is less attractive to investors as compared to other currencies, resulting in a weaker exchange rate. The NZD is also negatively affected by the trade war between the US and China, as it decreases the global demand for goods and services, which New Zealand is heavily reliant on.

Expert Perspectives

Experts have noted that the NZD to EUR exchange rate is closely tied to global economic conditions. According to David Song, an analyst at DailyFX, “New Zealand relies heavily on the global demand for goods and services, which will likely drive investors into and out of the NZD against the EUR” (Song, 2020). Joe Perry, a senior analyst at FXStreet suggests that since European markets constitute one of NZD’s major trading partners, if the European economies suffer, the NZD value is bound to decline (Perry, 2020).

Implications of Fluctuating Exchange Rate

The NZD to EUR exchange rate fluctuates more slowly than other more volatile currencies, like the US dollar or the Japanese Yen. This indicates that the exchange rate between the two currencies is stable most of the time, but there can still be sudden and significant changes in the exchange rate in the short-term. For instance, due to the uncertainty caused by the COVID-19 pandemic, the NZD to EUR exchange rate fell by almost 2.6% between February 27th and March 2nd, 2020.

Online Platforms to Exchange NZD to EUR

If you are looking to exchange NZD to EUR, there is a wide selection of online platforms available. Popular platforms include OFX which offers competitive rates and fees, TransferWise which is online-based with low-cost international payments, and CurrencyFair which specializes in peer-to-peer trading among members.

Investing in NZ-EUR Currency Pair

Investing in NZ-EUR is becoming increasingly popular with traders looking for an alternative to the riskier U.S. dollar, Canadian dollar, British pound, or Japanese yen currencies. Investors can use technical and fundamental analysis techniques to gain additional insight into the NZ-EUR exchange rate. Technical analysis can be used to predict future movements of the exchange rate, while fundamental analysis focuses on geopolitical events and economic changes that can influence the value of the NZD and the EUR.

Advantages of NZD and EUR

The New Zealand dollar is backed by a strong and reliable economic position, which makes it an attractive investment option for traders. NZD is also less subject to extreme volatility than other currencies, making it a relatively safe and stable investment vehicle. In addition, the Euro is a widely-traded currency with a strong international presence which gives it additional appeal for investors. Moreover, the Euro is known for its stability which often makes it a safe haven when other major currencies are in decline.

Risks of Investing in NZ-EUR Currency Pair

Despite the advantages of the NZD and EUR, there can also be risks for investors. Investing in the currency pair requires a good understanding of international markets and geopolitical risks, so it is important to stay informed of global events and their potential impact on the currency pair. Additionally, investors need to assess carefully the risk/reward ratio of the currency pair, because changes in exchange rates can affect the value of their investments.

Conclusion

In conclusion, understanding the exchange rate between the NZD and the EUR is important for traders, travelers, and exchange traders. The exchange rate is largely affected by the relative supply and demand for both currencies, as well as the Reserve Bank of New Zealand’s interest rate policy, global economic conditions, and political events. Investing in the NZ-EUR currency pair can provide investors with an attractive alternative to other currency investments, but the risks associated with the currency pair should be carefully assessed.

Diana Booker

Diana D. Booker is a freelance writer and editor based in Auckland, New Zealand. She has over 20 years' experience writing and editing for various publications. Diana is passionate about telling stories that capture the spirit of the country she loves and enjoys exploring its unique culture and landscape.

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