Us Dollar To Nz Dollar Exchange Rate History
The US dollar to New Zealand dollar exchange rate is an important economic indicator that affects businesses and individuals in both countries. This article will explore the history of this exchange rate, including key events and factors that have influenced it over time.
Early History
The New Zealand dollar was initially introduced in 1967, replacing the New Zealand pound. At that time, the exchange rate was fixed to the US dollar at a rate of 1 NZD to 1.39 USD.
However, this fixed exchange rate was not sustainable, and in 1985, the New Zealand government decided to float the currency. This meant that the exchange rate was determined by market forces, rather than being fixed by the government.
1985 - 2000
Following the float, the New Zealand dollar experienced significant fluctuations against the US dollar during the late 1980s and early 1990s. In 1987, the exchange rate reached a high of 1 NZD to 0.72 USD, before dropping to a low of 1 NZD to 0.44 USD in 1992.
This instability was caused by a range of factors, including changes in interest rates, fluctuations in commodity prices, and political uncertainty.
2000 - 2010
During the early 2000s, the New Zealand dollar began to strengthen against the US dollar. This was largely due to the strong performance of the New Zealand economy, which was growing at a faster rate than the US economy.
However, this trend was interrupted by the global financial crisis in 2008, which caused the New Zealand dollar to weaken significantly against the US dollar.
2010 - Present
In recent years, the New Zealand dollar has continued to fluctuate against the US dollar. Factors that have influenced this exchange rate include changes in commodity prices, political uncertainty, and differences in interest rates between the US and New Zealand.
As of September 2021, the exchange rate stands at approximately 1 NZD to 0.70 USD.
Conclusion
The history of the US dollar to New Zealand dollar exchange rate is complex and influenced by a range of economic and political factors. While the exchange rate has fluctuated significantly over time, it remains an important indicator of the economic relationship between these two countries.