The NZ dollar hit a new post float high against the greenback yesterday after markets were stunned by a huge rise in the country’s trade surplus on April.
The dollar jumped to 82.19 USc, the highest since the float in 1985 and took its rise in the past three months past 10%.
The currency hit a three month high as well against the Australian dollar yesterday in the wake of the trade figures.
Statistics New Zealand said yesterday the trade surplus widened by nearly twice the market estimate to a new all time high.
The surplus hit $NZ1.11 billion, the biggest ever, from a revised $NZ578 million surplus in March.
The driver for the surge was higher dairy prices and a 40% leap in shipments to China.
Exports rose 17%, or $NZ691, million from April 2010 to $NZ 4.7 billion, led by a range of commodities, milk powder, butter, and cheese commodity group.
Imports were up 7.2%, or $238 million to $3.5 billion, led by increases of a 27% rise in petroleum and products values.
The annual trade balance for the year ended April 2011 was a surplus of $NZ1.2 billion. This is the largest surplus for a year ended April since 1994.
Dairy exports, which make up a fifth of overseas sales, surged 32% from a year earlier to NZ$1.19 billion.
The value was the second-largest on record after March.
