With the New Zealand dollar trading at all time highs against the US dollar this is a good time to assess overseas portfolios.
It is trading at 82c to the US dollar and broke the 80c threshold on Friday last week.
See weekly video market update with IRG BOP's Jonathan York below.
The crossing of the 82c line means the New Zealand dollar has rallied more than 11c against the US dollar in the last six weeks.
The strong dollar is a reflection of how people overseas view the New Zealand economy – strong. This is likely influenced by record projected payouts for Fonterra dairy farmers and speculation this week about Chinese investment in New Zealand.
The strong currency presents good overseas investment opportunities for New Zealanders as their buying power is increased.
5 comments
It's jolly low against the Aussie
Posted on 01-06-2011 09:43 | By JSmithington
All this talk of a high kiwi dollar would be better stated as a low american dollar. The NZ dollar is horrendously low against the Aussie. Costs about $1400 NZ to buy $1000 Aussie. Just makes our salaries and conditions even worse compared to our well off neighbour sadly.
What harm is this doing?
Posted on 01-06-2011 11:21 | By monty111
How on earth the Kiwi dollar is so high against the American and UK currency is beyond me. It's not as if this country is swimming in prosperity. How many tourists from those countries will not now visit here because of the strong dollar? This situation can do nothing but harm to our economy in the long term and the sooner it is dealt with the better.
High on what?
Posted on 01-06-2011 11:45 | By SpeakUp
The Kiwi $ is NOT high. The US$ Monopoly money is failing. We are caught in a maelstrom of $600 trillion derivatives within a world economy worth 60 trillion. Analogy could be a lottery with a price of 60 trillion and used lotto tickets worth 600 trillion. There will be many people missing out when the wins are counted. Lil' NZ is just lucky that we are diary to the Asian population tsunami. When this washes over us we'd be again lucky to survive. Looking at the stock market is like building sand castles.
@SpeakUp
Posted on 01-06-2011 12:24 | By esquire
I think the Kiwi$ is high. econo talk is about relativity and you can't say the 'NZ$ is not high' when it is at record levels against the US. But you are right in that one of the causes (and probably the main one) is the failing US economy.
Well, the glass is either half full...
Posted on 01-06-2011 14:33 | By SpeakUp
Although NZ is an island, we better don't think we are special. We live in a global maze. The US $ is at record levels against most other currencies. LOW that is. Look at the NZ$ value against the Aussi, Euro, Yuan, even commodities etc. and the 'high' picture takes on a different relation. I agree, everything is relative but still depending on a fixed (averaged) point of value. And the US plastic dollar is by no means such a point of value. Thanks for the dialogue.
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