$NZ tops 0.48

Press, 29 June 1985, Page 23

$NZ tops 0.48

PA Wellington The New Zealand dollar burst through the SUSO.4B barrier to reach JU50.4840 on the foreign exchange market in Wellington yesterday — its highest level since the unit floated on March 4. The breakthrough brought an end to months of what one dealer called the post-float "doldrums” when it was not unusual for the local currency to trade in a 20 to 30-point range for weeks on end. Yesterday the Kiwi traded in a one-cent range from 0.4735 to 0.4840 after opening at 0.4735/42. Dealers said demand for the local unit came in two big rushes, one at midday and the other in mid-afternoon. Towards the end of trading demand eased off, bringing the Kiwi down to a 0.4795/05 close, but the unit was still above its previous highs of around 0.4730 and 0.4740, set about a week after the float. At the end of a hectic day’s trading in the local currency dealers said that the unit’s new-found strength was brought about by a number of factors. One said strong demand for the New Zealand dollar was fuelled by optimism from last week’s announcement of a lower-than-expected fiscal deficit. All dealers spoken to predicted the Kiwi would remain firm next week.