June 6, 2007

Hard Times

As many of you already know, almost all my company's income is remitted in US dollars, as our major clients are in North America. Unfortunately due to high interest rates here and the continual decline of the US dollar, this was the headline I read this morning:

NZ Dollar Hits 25-Year High vs US Dollar
"The local currency climbed to US$0.7639 in late afternoon local trading, the highest since 1982, when the country ran a so-called crawling peg currency. That's also the highest since the kiwi, as the currency is called, was floated in March 1985 at $US0.4440."

Of course, if you're selling US dollars like I am, it's in fact a 25 year low, and the worse exchange rate since 1982. Mind you in 1982 I was just starting school, and had other things on mind. Still, it looks like hard times are ahead.

Posted by Matt at June 6, 2007 3:35 PM

Fraggle Chitter Chatter

I feel bad now for being pleased that I could buy lots of clothes during my holiday in the US (pound v dollar so much better). I hope, for your sake, it picks up soon!

Posted by: B at June 8, 2007 8:57 AM

Don't feel too bad, the pound has always been a strong currency. The main problem is our interest rates are so high, which is driving up the value of our currency. Unfortunately, the high rates don't offset the amount lost in the conversion :-S

Posted by: Matt at June 12, 2007 11:50 AM

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