Let me say first that a gradually appreciating exchange rate is something to which all countries should aspire. A trend appreciation in the real exchange rate is usually the direct result of a country’s relatively superior record of productivity improvement, and that is obviously something to aspire to.
A trend appreciation in the nominal exchange rate may arise from that superior record of productivity improvement or it may arise from a superior record of keeping inflation under control. And I think most New Zealanders, including most exporters, would welcome an appreciation which arises from one or both of those factors.