Hobbit blamed for rise in dollar

The New Zealand dollar has shot up against the US and some are blaming Hobbits.

Business correspondent Roger Kerr says the move started on Friday night when it moved up one and a half cents to 76.65, which could be due to Warner Brothers hedging its New Zealand dollar film costs.

He says the New Zealand dollar has gained against the Aussie as well on the cross rate, so it appears our currency is moving independently.

Mr Kerr says the New Zealand dollar being well above 75 US cents is not good for our export-led recovery.

- NEWSTALK ZB