As it had in the previous week, the Kiwi finished on a high note, helped by a sharp increase in New Zealand business confidence. However, the late rally was not enough to offset earlier setbacks. The NZ dollar lost a cent on the week to the US dollar and fell by a cent and three quarters against sterling.
The other NZ ecostats were not particularly helpful. Building permits were down by -5.7% in September and the trade deficit for that month was wider than expected as imports increased and exports fell. The Reserve Bank of New Zealand kept its benchmark interest rate on hold. The decision provided a little help to the Kiwi - because some investors had been half-expecting a cut - but was overshadowed by the statement issued a couple of hours earlier by the US Federal Reserve, which hinted strongly at a rate increase in December.