New Zealand dollar remains volatile but flat whites are cheaper

THE New Zealand Dollar continued its wild fluctation against the pound in May according to HiFX a UK based premier provider of foreign exchange and cash deposit services.

Second in volatility to the US dollar, the Kiwi dollar varied from a high of High: 2.6272 to a low of 2.4816 to the pound.

On an exchange of £200,000 this could mean a difference of $29,000

May delivered some positive news for Sterling, hitting a five month high against the Euro (GBP/EUR 1.1557) and a seven month high against the Dollar (GBP/USD 1.6230) thanks to increased optimism surrounding the UK economy.

However, the pound was also vulnerable to political news in a month which saw the British Government almost collapse as Gordon Brown prevailed against threats to his premiership.

Mark Bodega, Director of currency specialists HiFX says, "As UK PLC struggles to find signs of any green shoots, government ministers seemed more interested in saving their own skins and deposing Gordon Brown than worrying about the impact all this infighting would have on Sterling.

"Our monthly Global Currency Moves Report shows how volatile the pound continues to be. With so many factors affecting Sterling, it is nigh on impossible for British expats abroad to predict what is going to happen."

The above graph shows the cost of the essential daily large flat white as supplied by Midnight Espresso, 178 Cuba Street, Wellington, New Zealand.

Today's cost in UK pounds sterling is: £1.56p 1p less than last week. Good news. Your pounds now go further along Cuba Street, Wellington.

Exchange rate data kindly supplied by XE.com currency services.