13 Nov 2014

Turbulent day for dollar, market down

6:04 pm on 13 November 2014

The New Zealand dollar had a bumpy day, while the local sharemarket bucked its recent record breaking trend, ending 25 points lower.

The Kiwi and the Australian dollar rose overnight after the Bank of Japan eased monetary policy, but fell later in the day after the Reserve Bank of Australia said it would not rule out intervening in the currency.

Bank of New Zealand foreign exchange strategist Raiko Shareef said the market over-reacted to the Australian comments and the New Zealand dollar had recovered most of its losses.

At 5.20pm today, the New Zealand dollar was trading at 78.64 US cents, 90.43 Australian, 49.85 British pence, 0.6320 euro, 91.03 yen and 4.82 renminbi.

Meanwhile, the benchmark Top 50 Index was down 25 points to 5463 by the close of trade.

The head of wealth research at Craigs Investment Partners, Mark Lister, said the New Zealand sharemarket was taking a cautious approach ahead of some key economic data out of China, in particular.

Wynyard Group rose 7 cents to $2.10 after announcing a big crime-fighting contract with the Thai government.

Rakon rose 1.5 cents to 36 cents, after saying it is confident of returning to profitability in the current year.

Among the leaders, Meridian Energy fell 3.5 cents to $1.69.5, while Contact Energy was 9 cents lower at $6.28.