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Source: Close Up -
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There has never been a better time for New Zealanders to buy goods from overseas.
That's because the kiwi dollar has soared to another record high.
It peaked at 82.9 cents US and tonight is down slightly from its overnight highs.
The kiwi rose after the Reserve Bank gave a bright view of New Zealand's economic future.
The dollar's constant climb is good news for online shoppers like entrepreneur, Hayden Davison, an Auckland student.
"It's encouraging me to buy more," he told ONE News.
But it's not so good for flower exporter Greg Keymer.
"It's pretty challenging," he said.
The high kiwi dollar has set a new post-float record three times in the last fortnight.
It hit its highest at 4am this morning, 82.98 cents US.
This climb started yesterday when the Reserve Bank released its Monetary Policy Statement predicting the country's economic growth to more than triple next year.
The market's demand for kiwi dollars has Reserve Bank Governor Alan Bollard expressing surprise.
"We believe they've slightly overreacted. We started off thinking that the New Zealand dollar was nevertheless overvalued and we still hold that view," Bollard said.
Davison started importing headphones from the US and selling them locally when he saw the dollar climbing. Today he is sold out.
"Even a cent makes a big impact on how much I make. My margin has probably gone up 20 to 30 dollars per pair of headphones from this increase," he said.
For New Zealand consumers, the high dollar should mean cheaper petrol and other imports.
And if they want to travel to the US and Europe, now is the time.
But the kiwi's strength is squeezing exporters' already tight margins.
There is uncharted territory ahead with predictions the dollar could even hit 86 US cents.
"We're already in the never never land, said Keymer.
"We just have no idea how the sales will go at 86 (US cents). There may be a cut off point at 85 where the customers go 'enough's enough'," he said.
In the long run exporters may have to prepare for life with a higher dollar.
"We used to talk about 60 cents. It does look like fair value for the New Zealand dollar's around 70 cents," said Cameron Bagrie, ANZ Chief Economist.
Right now the dollar is a lot higher, helping the growth of the online importer's business, but causing concern for the flower exporter.
