30 Aug 2013

Offshore events drive dollar rollar coaster

7:42 pm on 30 August 2013

The New Zealand dollar has had a roller-coaster ride this week.

Bancorp Treasury Services senior client advisor Peter Cavanaugh said the drivers have all been events offshore.

"The roller coaster has been really a focus of US data and whether the Federal Reserve would begin its tapering in September, or not, so we've had the swings and roundabouts of US data," MR Cavanaugh said.

"But overall, at the end of the week, the New Zealand dollar has eased, has weakened, as the world has fretted about US intervention in the Syrian civil war, in response to the chemical attacks."

Just after 5pm, the kiwi was trading at US77.71 cents and A86.96 cents.

The share market finished the week on a strong note today, the benchmark Top 50 index up 20 points to 4541.

Craigs Investment Partners broker Andrew Cathie said the market had stabilised after being hit by jitters relating to the Syrian conflict earlier in the week.

Among rising stocks, accounting software firm Xero jumped $1 to $16.80 after the company said it had 200,000 customers, an increase from 157,000 at the end of March.

Tourism Holdings rose 3 cents to 66 cents after it said it was feeling upbeat about the coming year, with strength in its New Zealand and US businesses offsetting weakness across the Tasman.

Synlait Milk climbed 6 cents to $3.14 after it said it is likely to process up to 50 million litres more milk this year than the about 540 million litres forecast in its prospectus.

GuocoLeisure, the old Brierley Investments, gained 2 cents to 74 cents despite reporting a 43% drop in annual profit, largely because of lower Bass Strait oil and gas royalties and a higher tax bill.

Guinness Peat Group shares rose 2.5 cents to 57.5 cents after its well-received first-half results earlier this week.

Among decliners, software firm Diligent sank 11 cents to $4.69 after it asked the stock exchange for a waiver because of accounting issues.

Security software company Wynyard Group shed 2 cents to $1.24. The stock has traded strongly in recent weeks after a weak debut in July. The shares were floated at $1.15.