Exporters face record high for dollar

Exporters face record high for dollar

Media Release 24 July 2007

New Zealand exporters will be getting on with business as the dollar soars to US80 cents. But they will be gritting their teeth and taking a hit in their profit margins as the dollar continues its steady climb upwards.

As the dollar hits a 22-year, post-float high, commodity-based exporters are struggling to keep competitive in world markets. The dollar has risen about 30 per cent in the past year. High-value and niche exporters are best handling the steadily rising dollar.

“This is a difficult time for exporters, no question,” said Bob Walters, CEO of Export New Zealand.

“Export New Zealand isn’t relishing an increase in interest rates that may cause the dollar to rise through continuing speculation.

Jon Mayson, National President of Export New Zealand, has said clamouring for government intervention is pointless because the Government’s power is limited.

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