Business

Exchange rate volatility hurting NZ - Rakon

09:03 am on 16 August 2009

Technology exporter Rakon says it will have to move more manufacturing overseas as a result of the exchange rate.

The company says the New Zealand dollar's see-sawing is hurting the country's prospects of an export-led recovery.

Company representatives told shareholders at its annual meeting that while the business is in good health it will have to shift more manufacturing offshore to cope with the high level of the New Zealand dollar against the US currency.

Rakon chairman Bryan Mogridge is calling for a combined effort to bring stability to the dollar.

He says in the last year the dollar has swung from 80 cents to the US dollar down to 50 cents and back again to about 67 cents. Such volatility makes it almost impossible to make sensible strategic decisions, he says.