KEY POINTS:
New Zealand's dollar may stay high for longer than expected, Prime Minister Helen Clark said yesterday.
The kiwi has surged 11 per cent against the US dollar since June 15, making it the world's best-performing currency.
New Zealand's dollar extended its gain after Reserve Bank Governor Alan Bollard said last week that he might raise the benchmark rate from a record high 7.25 per cent next year.
The kiwi closed at US68.85c yesterday, down from US69.40c on Thursday.
"We think a stronger-for-longer kiwi dollar is going to be a feature in our future," Clark said in an interview in Hong Kong, where she is meeting government and business leaders.
Clark has met Hong Kong chief executive Donald Tsang and spoken to the Chamber of Commerce during her two-day visit to the Chinese territory.
Hong Kong is New Zealand's 10th-largest market, accounting for $566 million worth of exports in the 12 months to October 31.
New Zealand is in its ninth round of negotiations for a free trade agreement with China, its fourth-largest market. Clark said talks are on track to be concluded in April 2008.
- BLOOMBERG
