WELLINGTON: The New Zealand dollar touched US74.25 cents, its lowest level since November 2011 when the NZ dollar hit US73.71 cents, it was well down from its New York close on US74.50 cents, and it was hovering at US74.35 cents.
Catherine Beard of Export NZ said the drop would not just benefit those exporting to the US but anyone trading in US dollars. According to economists, beef farmers and other exporters to the US are expected to reap the initial benefits.
Dairy farmers whose returns have been hit by lackluster global dairy prices may also see some relief next season if the kiwi’s direction is sustained.
However the New Zealand dollar remains high against other currencies, meaning those trading in Australian dollars or Euros such as wine, lamb and venison exporters will be highly priced in their markets.
Raiko Shareef, currency strategist for the BNZ, said today’s level was sparked as investors warmed to the prospect of rising interest rates in the US as its economy improves.
Shareef said it was really a US dollar story, where the US dollar was bought against almost all major currencies.
