How listed companies are hedging the weak kiwi dollar

Locking in an exchange rate allows a business to set pricing and ensure profitability, even if it means paying a higher rate. (Image: Philippe Leone/Unsplash)

Dan Brunskill

Tue, 25 Oct 2022

The New Zealand dollar has fallen more than 20% against its American counterpart in the past 12 months, but it may be a net positive for many companies listed on the NZ stock exchange (NZX). A Jarden research note from early October said the weak exchange rate had muted the benefit of falling prices – priced in US dollars – in both freight and oil markets. Freight costs have fallen back to about 2.9 times pre-covid prices, the analysts wrote, but costs are still almost four times higher once converted into NZ dollars. ...

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