The Kiwi dollar was 88.3 cents against the US dollar a few days ago but by 5pm today it had dropped to 83.7 cents. This is still too high for exporters. New Zealand exports dairy products, meat, wool, timber, fruit, wine and many other products which grow on the land. Apple growers say they will lose money from selling their apples in Europe if the kiwi dollar stays high.
A high Kiwi dollar means that imports are cheaper. We import cars, clothes and electronic goods. New Zealanders who are travelling overseas are happy because their money will buy more in another country.
However, our Minister of Finance, Bill English believes the Kiwi dollar is too high but the government will not do anything to bring it down.
Questions
Why is the kiwi dollar high at the moment? Is it because of the weak US dollar and problems with Greece and some other countries in the EU? Or is it a sign that our economy is doing well?