Radio New Zealand - Te Reo Irirangi o Aotearoa

High dollar continues to dent export prices

Updated at 10:00 pm on 1 February 2010

Prices received by the main export industries were dented again in January by the high value of the New Zealand dollar.

World prices for agricultural and other soft commodities rose 0.4% to be a third higher than the same month last year.

But ANZ says prices fell 1.2% in January, once the high value of the New Zealand dollar is taken into account.

The bank says commodity prices are up only 5% over the past 12 months on a local currency basis.

Skins, logs and beef were the strongest commodities during the month - rising by more than 5%.

Dairy prices were the worst performer, losing 2% in January after rising every month since June last year.

Dollar tipped to fall further

The New Zealand dollar dipped very close to US70 cents on Monday and currency analysts believe it might fall further yet.

The dollar has fallen almost 6% in the past two weeks.

BNZ currency strategist Mike Jones says the dollar has experienced a bumpy ride in the past few weeks and is expected to be heavily traded this week. He says it still has room to fall further.

Copyright © 2010, Radio New Zealand