Should have clarified that I was talking from a sweetspot point of view for our export market, which is pretty buggered at the moment, for obvious reasons. As Rob said, wholesale costs would go up too for importers, assuming the products are bought in US dollars, which mine aren't but you could easily Substitute the euro for my case which is pretty weak as well.
I'm not an economist nor am I that smart, so it could be 80, 85 or 90 cents as the right spot, but I do know that having worked in export in a previous job business was better at around 75 cents which is of course a biased opinion, especially as I'd like to grow my own businesses export more in the future.
Its interesting.. For apparel retailers gross margins are the highest they've ever been but sales growth is anaemic so therefore they are relying on expanding gross margins to compensate for rising costs ie rent, labour, services etc. With the currency stabilised gross margin expansion will stall and retailers need sales growth to prevent operating deliberate. How this year pans out will be crucial