Foreign Exchange Dollar Vs. New Zealand Dollar
If you are planning to travel to New Zealand or investing in companies there, it is a good idea to know the current exchange rate. Investors also need to know the historical rates to understand how currency fluctuations can affect the return on an investment.
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Resource
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Yahoo Finance provides an easy-to-use currency exchange converter. It will give the current exchange rate between any pair of currencies. The codes are USD for the U.S. dollar and NZD for the New Zealand dollar.
History
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At the end of September 2009, the U.S. dollar was worth NZ$1.40. The NZD ended 2008 at $1.70 to the USD. The first three months of 2008 the NZD averaged about $1.90 to the USD. From April 2009 until the end of September 2009, the NZD has been appreciating against the greenback.
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Considerations
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If the NZD against the USD rate is falling as demonstrated in 2009, this is good for holders of New Zealand dollars buying goods in U.S. dollars. Travelers to New Zealand will find goods and services to be more expensive in U.S. dollar terms than they were in early 2009.
Calculations
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One divided by an exchange rate will give you the rate in the opposite direction. One divided by NZ$1.40 would equal. $0.714 NZD, or the amount needed to buy $1 USD. To calculate the cost of something in another currency, divide the price by the rate of the purchase currency. If something cost $25 NZD, 25 divided by 1.40 equals a cost of $17.86 in U.S. dollars.
Traveling
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When traveling, avoid making currency exchanges at airports. They always have unfavorable exchange rates. ATM withdrawals in local currency is a good way to get a competitive exchange rate. Check with your bank about exchange rates before traveling.
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