Strong dollar a boon for tourists heading to Europe

It might be a good time to visit the rellies in the old country or to see the sights of Europe.

The New Zealand dollar is trading at its highest level against the pound in three decades. One kiwi dollar now buys around 50 pence and 58 euro cents.

Tony Alexander from the BNZ says some of the data out of America has been better than expected, so investors are more confident about buying risky assets such as the New Zealand and Australian dollars.

He says a higher dollar is good news for holidaymakers heading to the other side of the world but not so good for exporters and tourists coming to New Zealand.

He believes the kiwi will continue to be volatile in 2011.

- NEWSTALK ZB