Sterling volatility continues to trouble wannabe emigres

Holidaymakers and Brits living on the continent were offered some glimmers of hope last month as Sterling strengthened against the Euro, according to the HiFX Global Currency Moves Report for March. The New Zealand dollar was ranked the most volatile currency in the period leaving the thousands of wannabe émigrés looking to head south in a difficult position.

EURO RALLY WELCOME

Whilst Sterling continued to under-perform against most major currencies, the slight rally against the Euro last month was welcomed by Brits living in or visiting popular destinations such as France, Spain or Italy as they found their pound stretching that bit further. At its monthly peak, Sterling was worth 1.12 Euros compared to the low of just 1.049 Euros to the pound. The rally was primarily driven by a combination of upbeat assessments for the UK's economic prospects later this year.

VOLATILITY IN THE PACIFIC

While there was better news closer to home, on the other side of the world there was still extreme volatility in the currency markets, with the NZ dollar ranked as the most volatile of the top five currencies reviewed above. The huge swings in its value against Sterling meant that anyone transferring £200,000 in March risked losing a massive NZ$80,020 if they mis-timed the transfer. New Zealand remains a popular emigration destination for Brits but with such huge volatility in its currency it has never been more important for would-be émigrés to plan the transfer of their assets with a currency specialists to ensure that they start their new life abroad with as much money as possible

Mark Bodega, Director of currency specialists HiFX comments "Our monthly global currency moves report clearly shows that with the world's economies in turmoil, the potential effect of currency moves on individuals can make a massive difference to individuals needing to transfer or spend money abroad.. While the pound rallied slightly against the Euro it is still too soon predict a full recovery and anyone spending Sterling on the continent will need to continue to watch the pennies for a while yet.

"Anyone planning to emigrate, particularly to New Zealand, needs to seek advice about how to mitigate the huge volatility that the currency is suffering or risk starting out their new life with less money than they'd hoped."