30 Jun 2014

Dollar weaker, shares little changed

5:59 pm on 30 June 2014

The New Zealand dollar is slightly weaker across the board compared to where it finished last week.

Bancorp Treasury Services client adviser Peter Cavanaugh said weaker-than-expected business confidence figures took the cap off the currency but, even without that, there was not sufficient confidence to take the currency higher from its already elevated levels.

"The business confidence survey results showed a much sharper than expected drop in business confidence, and that just pointed to the fragility of market confidence at the moment and pushing the currency onward and upward, particularly with comments from the likes of the Reserve Bank about how inappropriately high is the New Zealand dollar.

"The markets, of course, are fearful of the Reserve Bank of Australia coming out with a similar story at tomorrow's RBA meeting."

The ANZ Bank business survey put net confidence at 43 percent, down 11 points from last month and 28 points down from its peak.

However, confidence is still 33 points higher than the survey's long-run average of 10 points.

Just after 5pm, the New Zealand dollar was buying: 87.53 US cents, 92.86 Australian cents, 51.4 pence, 0.6416 euro, 88.66 yen and 5.43 renminbi.

Shares little changed

New Zealand shares were little changed, the benchmark Top 50 Index easing 3 points to 5141.

Forsyth Barr investment adviser Anthony Tuck said the attention of many investors was elsewhere.

"We're not getting a lot of leads from offshore. The US and European markets are pretty flat at the moment," Mr Tuck said.

"There's also quite a few IPOs (initial public offerings) either in the market at the moment or that are coming to market, so a lot of fund managers are busy trying to digest all that."

Shares in Hellaby rose 13 cents to $2.90, while shares in Air New Zealand fell 5 cents to $2.08.