Dollar slips to 0.47

Press, 4 July 1985, Page 28

Dollar slips to 0.47

PA Wellington The New Zealand dollar’s bubble burst yesterday afternoon as it dropped below SUSO.4B, but dealers said there was still some underlying strength. The dollar closed at $U50.4740/50 after selling down sharply in active afternoon trading. It had opened at SUSO.4BIB/28, marginally ahead of its previous day’s close. Dealers said a technical correction in the NZ dollar was long overdue after recent gains and importers moved in yesterday. Demand, rather than other currency movements, was still the main influence behind the Kiwi’s movements. “After two weeks of it going stronger and stronger, the euphoria died away a bit and people have got cold feet,” said one dealer. “It doesn’t take too much to move a currency. I think there is still some strength behind the Kiwi. “It should not go weaker, but it really depends on what happens over the next two days.” The Reserve Bank exchange rate index, which measures the New Zealand dollar against a tradeweighted basket of currencies, fell to 64.2 at 3 p.m. yesterday. It had opened at 64.9, having finished at 65.1 the previous day. The United States dollar closed firmer at $NZ3.0420/ 40, compared with its $NZ3.0385/00 opening here and its $NZ3.0390/00 New York close. Sterling closed at $U51.3054/64 compared with its $U51.3067/77 local opening and its $U51.3070/80 New York close. The yen closed at 248.20/30, compared with 247.98/08 and 248.05/15, respectively. The Australian dollar closed at $U50.6660/70, compared with its $U50.6658/65 opening. By the end of the trading day in the United States, the American dollar had fallen to 248.045 Japanese yen, against 248.075 yen the previous day. The pound rose to $U51.30745 from $U51.3040. On the New York commodity exchange, gold bullion for current delivery gained 80c to close at $U5309.80 an ounce.