The strengthening New Zealand economy continues to provide impetus to a rising sharemarket and dollar.
The New Zealand dollar trade-weighted index went above 79 for the first time in 17 months and the NZX continues to climb to almost daily records.
Craigs Investment Partners broker Peter McIntyre said yesterday he could see nothing on the immediate horizon to stop the rise of both the currency and the markets.
"There is a risk for New Zealand from offshore, especially in the case of a major geopolitical event or an agriculture event like foot and mouth. But I can’t see ... that happening at this stage."
Most of the rise in the value of the New Zealand dollar had stemmed from the United States Federal Reserve continuing to talk about an interest rate rise without doing anything about it.
"Everybody is over the fact they have kept talking about it for so long. Obviously, jobs are important to the Fed and if we had got a strong jobs report on Friday, we would see the markets moving in the belief there finally was an increase in interest rates coming."
Craigs’ outlook was still forecasting an increase in the Fed lending rate this month.
New Zealand’s official cash rate was still forecast to fall to 1.5% next year because of a lack of inflation in the market.
The Fed’s Beige Book this week showed most US districts reported a "modest" or "moderate" pace of growth overall.
Bank of England governor Mark Carney played down signs of strength in the UK economy and kept the option open for a further easing in rates.
By contrast, figures showed New Zealand manufacturing sales rose in the second quarter, led by meat and dairy sales.
