8 Oct 2014

Dollar lower, but market ends day up

6:33 pm on 8 October 2014

The New Zealand dollar was slightly down today, in line with weakness in international equities markets.

The director of Rankin Treasury Advisory, Derek Rankin, said the New Zealand currency was negatively impacted following an International Monetary Fund report.

The Washington-based organisation has cut its forecasts once again, to 3.3 percent this year and 3.8 percent in 2015, saying the recovery is weak and uneven.

It said the pace of economic growth might never return to levels seen before the global financial crisis which began in 2008.

At 5.20pm today, the New Zealand dollar was trading at 77.93 US cents, 88.81 Australian cents, 48.52 British pence, 0.6166 euro, 84.43 yen and 4.78 renminbi.

Meanwhile, the New Zealand sharemarket had a weaker tone for most of the day, but rallied just at the close. The benchmark Top 50 Index rose 10 points to 5246.

NZ equity manager at JB Were, Rickey Ward, said the market has been struggling over the past few days and the overseas sentiment has not helped.

"The lead came from offshore markets which also had that, but it has had a very weak tone for quite some time - that didn't seem to change today."

Mr Ward said there continues to be weakness in Fletcher Building. "The bellwether stock for our market just seems to not be able to buy a friend at the moment. People are speculating as to why the reasons behind that might be, but it is only speculation."

Shares in Fletcher Building closed the day steady at $8.61, Chorus was up 5 cents to $1.88 and Ocean Gold gained 25 cents to $2.85.