Prime Minister John Key says the growing strength of the New Zealand dollar takes the currency into uncharted territory and will produce some difficulties.
The currency touched 82.16 US cents on Monday afternoon - its highest point since it was floated in 1985. It has since eased back and on Tuesday morning was trading at 81.75 US cents.
Mr Key says the surge in the dollar is bearable for commodity-based exporters because the price of their goods is high.
"But I think we all acknowledge that for the manufacturer that's in a non-commodity linked area selling into a US dollar-based market, these levels are not sustainable."
Mr Key says, however, the strong dollar should take the pressure off the price of petrol for motorists.
Fishing and export company Sanford says the record high New Zealand dollar will make it hard for it to make money.
Sanford accounts for more than a quarter of the country's $1.3 billion fishing industry.
Managing director Eric Barratt told Nine to Noon the firm buys fuel and freight in US dollars and has some currency cover to protect part of its business, but some exposure to the rise in the dollar remains.
No immediate price drop
The Retailers Association says shops would not immediately be able to drop the price of their goods, even if the cost of transporting them fell.
It says retailers order and pay for merchandise at least six months before receiving it.
Record trade surplus
The dollar's surge was boosted by a record monthly trade surplus, which rose to $1.1 billion in April, almost double the amount in the same period a year ago.
Exports jumped 17% to $4.7 billion, led by higher prices for powder, butter, and cheese, while imports rose 7% to $3.5 billion, mainly because of higher fuel prices.
Despite signs that commodity prices remain robust, TD Securities senior strategist, Roland Randall, says farmers are repaying debt, not spending it.
On an annual basis, the surplus stood at $1.2 billion, the largest April surplus in 17 years.
