Kiwi travellers are being warned to expect major currency volatility today as markets react to Donald Trump's presidential victory.
Travel Money NZ manager Daniel Jackson said the company had been warning its customers to expect currency fallout.
"The early reaction by global markets resulted in a decrease in the value of the kiwi dollar before results were even confirmed," Jackson said. "We are expecting continued volatility in markets through the day as markets react, and further changes in exchange rates."
The New Zealand dollar 74.81 yen as at 6pm in Wellington from 76.53 yen late yesterday. Against the US dollar the Kiwi dropped to US72.8 cents from US73.24 cents yesterday.
In Australia the currency impact was even greater. The Australian dollar dropped not only against the US dollar, but against the British Pound and Euro, too.
As the election results rolled in last night, customer enquiries increased steadily, Jackson said.
"Sales volumes were markedly higher late in the day and our website traffic indicates a high level of customer concern and interest."
Travel Money NZ reported a major increase in the demand for Japanese Yen, which is often seen as a safe haven in times of increased volatility.
The currency exchange firm is advising customers to monitor market changes, review their currency needs and individual situations before deciding whether to lock in the exchange rate at present.
Changes in exchange rates can have a real impact on overseas spending money, Jackson said.
The New Zealand dollar fell as the greenback recovered from an initial sell-off following Donald Trump's shock US election win as financial markets saw positives for the US economy in his promises to cut corporate tax and boost infrastructure spending, creating more American jobs.
The kiwi dollar today traded at 72.72 US cents at 8am in Wellington from 73.33 cents late yesterday. It rose to 76.92 yen having tumbled to 74.66 yen against the so-called safe-haven currency in the immediate market ructions sparked by Trump's win.
We are expecting continued volatility in markets through the day as markets react, and further changes in exchange rates.
It may be a busy morning for New Zealand traders. Reserve Bank governor Graeme Wheeler is widely expected to cut the official cash rate to 1.75 per cent and hint at more easing to prevent the market looking ahead to a time of rising interest rates that would favour a stronger kiwi.
"Trump says he will cut the corporate tax rate to 15 per cent and renew all the infrastructure and get growth going," said Martin Rudings, senior foreign exchange dealer at OMF. "That's going to be good for the American economy. In some parts of the world there may be concerns about trade, but generally the market thinks he's going to get things moving."
The trade-weighted index slipped to 78.49 from 78.66, still well above the level projected by the RBNZ for the fourth quarter in its August forecasts.
The New Zealand dollar declined to 58.57 British pence from 58.68 pence and fell to 95.29 Australian cents from 96.19 cents. It gained to 66.57 euro cents from 65.25 cents and fell to 4.9316 yuan from 4.9639 yuan.
- additional reporting BusinessDesk.