NZ dollar hits US76c. How does this affect you?

**caesius** · 11th June 2007, 10:52

Not good news for those who hold shares on the NZX (disc: myself included). http://www.nzherald.co.nz/section/3/...ectid=10444814

How is the high dollar affecting you, your shares or your business?

**Pussy** · 11th June 2007, 11:00

Severely..... both professionally and personally. A large part of my clientelle are sheep and beef farmers, their income is very reduced accordingly. And watch the interest rates on mortgages, they'll take another hike.

**Lias** · 11th June 2007, 11:13

Personally I'm loving it.

My employer isn't an exporter, so my job isnt affected. From a consumers point of view its brilliant to bring stuff in from the US at the moment.

I want to see us hit 90+ cents :-)

Also in theory with the export meat and dairy market suffering, we should see a glut of production and massively lowered meat prices on the domestic market.

**caesius** · 11th June 2007, 11:14

What gets me is Bollard and Cullen's talk of how NZ must become "a nation of shareholders" while at the same time jacking up interest rates and pummeling our stock exchange.

All this will do is force people back into housing.

**cowpoos** · 11th June 2007, 11:15

Originally Posted by Lias

I want to see us hit 90+ cents :-)

without sounding too blunt...hmm...nah bugger it...your not all that bright are you?

**zeocen** · 11th June 2007, 11:18

Dang, maybe I *should* buy one of those nolan n102 helmets from ebay now.

**caesius** · 11th June 2007, 11:20

Personally I'm loving it.

My employer isn't an exporter, so my job isnt affected. From a consumers point of view its brilliant to bring stuff in from the US at the moment.

I want to see us hit 90+ cents :-)

I found this a good read.

**Big Dave** · 11th June 2007, 11:22

Nil effect.

**Blackbird** · 11th June 2007, 11:25

We sell our pulp and paper in $US, the international commodity currency. For every cent that the currency moves, we either gain or lose $10 million p.a on the bottom line. Our budget this financial year was set at $0.70 fx - ouch

Good job commodity prices have risen substantially, or we'd be like the Canadian mills, closing permanently!

**scumdog** · 11th June 2007, 11:25

It means the '66 T-bird I bought in 2005 for NZ$6,600 would now only have cost me NZ$6,050

Last time it was 76 cents was way back in 1982.

**cowpoos** · 11th June 2007, 11:29

Originally Posted by Blackbird

We sell our pulp and paper in $US, the international commodity currency. For every cent that the currency moves, we either gain or lose $10 million p.a on the bottom line. Our budget this financial year was set at $0.70 fx - ouch

Good job commodity prices have risen substantially, or we'd be like the Canadian mills, closing permanently!

are you implying that the pulp and paper industry doesn't hedge?? or the comapny you work for?? thats balsy!!

**caesius** · 11th June 2007, 11:33

Anyone here a member on sharetrader.co.nz?

**tri boy** · 11th June 2007, 11:34

High dollar, export nation. Not good at all.
Lay offs, mortgagee sales, general down turn in countries optimism etc, 2-3yr bumpy ride along the bottom while manufacturing, farm gate earnings evaporate.
New Zealand goes through this every 7-10 yrs. Lower your debt levels, stop buying overpriced shit, and learn how to care and share.
Oh never mind, 3rd world status isn't that bad is it?

**steved** · 11th June 2007, 11:36

Originally Posted by cowpoos

are you implying that the pulp and paper industry doesn't hedge?? or the comapny you work for?? thats balsy!!

Hedging doesn't last forever. It depends on the time-frame of their hedging.

**caesius** · 11th June 2007, 11:38

Lay offs, mortgagee sales, general down turn in countries optimism etc, 2-3yr bumpy ride along the bottom while manufacturing, farm gate earnings evaporate.

Agreed. The interest rate hikes aren't being given time to hit. When they do finally hit, they will HIT...