22 Oct 2009

Importers celebrate high NZ dollar

7:02 pm on 22 October 2009

Importers are celebrating the high New Zealand dollar which they say is good news for Christmas shoppers.

Increasing risk appetite, a weaker US dollar and improved confidence in the global economic recovery has prompted investors to move to higher-yielding currencies, pushing the New Zealand dollar to US76 cents for the first time in 15 months.

The Importers Institute says the surging dollar has come at just the right time and not just for consumer goods.

Secretary Daniel Silva says raw materials, pharmaceuticals, fertilisers and petrol will all become cheaper.

Business New Zealand says having some cheaper imported items means the high dollar is not all bad news for exporters either.

However, economist John Pask says the unstable US dollar which is driving the rise in the Kiwi, is still worrying for exporters.