SUS contract jumps $600

Press, 8 February 1985, Page 8

SUS contract jumps $600

United States dollar contracts opened higher for the third successive trading day on the New Zealand Futures Exchange yesterday. They were 120 to 130 points up, representing a gain of $6OO on each contract. The contracts have risen about $6OO between close and opening on each of the last three trading days. Dr Brent Layton, of John Marshall and Company, Ltd, Christchurch, said the rises reflected the strength of the United States dollar and particularly the weakness of the Australian dollar against it. He attributes the rise in the United States dollar to three factors: Q People are confident the

United States economic recovery would continue. © They are confident that American interest rates are bottoming out. © The failure of the bids by the central banks of Japan and West Germany to stem the United States dollar’s rise against their currencies. Dr Layton said, however, that he would not be surprised if the United States dollar crashed from its high value “one night.” The futures market was abuzz yesterday will a rumour that the New Zealaand dollar will be floated this week-end. It seems to be based on the demise of banks’ compulsory stock ratios from Monday, and by non-committal remarks by

the Minister of Finance, Mr Douglas, in a radio interview yesterday morning. Contract delayed — The introduction of the commercial paper futures contract has been delayed by the New Zealand Futures Exchange. The contract was planned to open Monday, February 11, but has been delayed for two or three weeks to enable all parties to overcome minor operational difficulties experienced since the introduction of the United States dollar contract on January 25. Details of trading in the United States dollar contract yesterday: SUS CONTRACT Mth Open H/L Last Vol Feb. 2.1790 .1825/790 .1825 12 Mar. 2.1950 ' .2035/901 .1980 44

Apr. 2.2180 .2225/100 .2130 6 Jun. — — — — Sep. — — ~ — Dec. — — — — Contracts traded: 62