11 Dec 2012

Kiwi predicted to peak at US86 cents

5:01 pm on 11 December 2012

Businesses are expecting the New Zealand dollar to peak against its United States counterpart in June next year and then ease back as the global economy improves.

ASB's Institutional Kiwi Dollar Barometer tracks exporters' and importers' exposure to foreign risk by surveying businesses with annual turnover of at least $1 million. It also surveys their expectations for the dollar.

The businesses believe that China and the US have the biggest influence on the dollar, while Europe has surprisingly little influence.

ASB chief economist Nick Tuffley says exporters and importers believe the dollar will peak next June at about US86 cents.