This currency pair measures how much 1 New Zealand Dollar is worth in US Dollars. The different sides of this currency pair can be affected by various factors such as central bank interest rate decisions, economic growth reports, and general market trends. Since New Zealand’s economy is heavily dependent on dairy exports, reports relating to the performance of this industry could also create currency volatility.
New Zealand currency has a long history of over 160 years. The NZD is the official currency of New Zealand and is represented by the symbol $ or NZ$. New Zealand back in the 1800s used its banknotes and coins before British currency was even legal currency. The US dollar caught up in the early 1920s, and by 1944, with the conception of the Bretton-Woods monetary system, the pound to dollar exchange rate was pegged at £1:$4.03. In 1971, the Britain pound became a free-floating currency as the Bretton-Woods system failed. Simultaneously the US dollar became free-floating, and the US decided to drop the gold standard.
