N.Z. dollar eases in busy trading

Press, 3 July 1985, Page 35

N.Z. dollar eases in busy trading

PA Wellington The New Zealand dollar was easier in late afternoon trading on the foreign exchange market at $U50.4815/25, compared with its $U50.4865/75 opening in busy but orderly trading. Dealers said the local unit had not been sold down appreciably, trading in a reasonable range of between SUSO.4BIO and $U50.4870. They said the market was “nervy,” but not nearly to the extent of Monday, when the unit came within strik-

ing distance of SUSO.49. Some said there was a prospect of some profittaking at the Kiwi’s present level. Dealers were unwilling to predict what would happen to the New Zealand unit. There was still demand for Euro Kiwi bonds and Government stock but, as the Kiwi strengthed — costing “an arm and a leg” for off-shore interests to buy in order to take advantage of the issues — it did look not as attractive, said one dealer. Dealers said the fluctua-

tions of other currencies, the United States dollar, for instance, still had no bearing on the New Zealand dollar. They attributed its present behaviour simply to supply and demand. Yesterday the New Zealand dollar was worth 48.3 c U.S., 72.4 c Australian, 37.0 p, 119.8 yen and 1.47 marks. The Reserve Bank indicative dollar exchange rate index was at 65.1 at 3 p.m., down from 65.4 in the morning, but firmer on its 62.7 recorded level before the float. The United States dollar was slightly easier at 3.0437/47 marks in late afternoon trading, compared with its 3.0457/67 local opening and 3.0440/55 close in New York. Sterling was at $U51.3060/70, compared with its $U51.3035/45 local opening and $U51.3030/40 close in New York. The yen traded at 248.07/ 17, compared with 248.05/15 and 248.10/20, respectively. The Australian dollar was at $U50.6665/75, unchanged from its opening, but easier against its $U50.6680/90 previous close. In New York, the American dollar turned higher in late trading, helped by fresh evidence of renewed economic growth in the United States and an increase in short-term American interest rates. By the end of the trading day in the United States, the dollar was quoted at 248.075 Japanese yen, against 248.55 yen late on Friday. The pound slipped to $U51.3040 from $U51.3085 late Friday. Other dollar rates: 3.04775 West German marks, up from 3.0325; 2.5535 Swiss francs, up from 2.5390; 9.2650 French francs, up from 9.2150; and 1.3575 Canadian dollars, down from 1.3610. On the New York commodity exchange, gold bullion for current delivery fell SUS6.7O to close at SUS3O9 a troy ounce, its lowest finish since the $U5308.90 of May 6. In Sydney yesterday, the Australian dollar closed easier at $U566.55/65, down from Monday's ?U566.75/85, but little changed from its opening of $U566.50/60. Dealers said volume was light and the unit traded in a narrow trading range between 66.75 United States cents to 66.40 United States cents. They said the market was generally cautious about the United States dollar’s short term direction and the outcome of the national taxation summit in Canberra. The dollar lost ground against the New Zealand dollar, closing at $NZ1.3638 from $NZ1.3753.