$NZ continues to strengthen

Press, 2 August 1985, Page 13

$NZ continues to strengthen

PA Wellington The New Zealand dollar drifted quietly upwards on the foreign exchange market yesterday despite a slight firming in the United States dollar. It opened at SUSOJ24B/58 in the morning. In the afternoon exporters held a slight sway and the dollar moved up to be around its day’s highs at $U50.5275/85 in late trading. Dealers said there was a vast amount of corporate activity one way or the other. “It looks possible that it will go through 53 UJS. cents offshore, depending on corporate interest there,” said one dealer. The Reserve Bank tradeweighted exchange rate index firmed to 67.6 at 3 p.m. yesterday from 67.0 24 hours earlier and from 67.2 in the morning. Yesterday afternoon the New Zealand dollar was worth 72.71 c Australian, 37.32 p sterling, 124.62 yen and 1.4720 marks — picking up on all four currencies since Wednesday. The strength of the New Zealand dollar is of concern to at least one company. If the dollar remains strong

and interest rates high, National Bloodstock Corporation might move some of its operations overseas, the chairman, Mr D. W. Phillips, told the annual meeting in Auckland yesterday. The United States dollar gained slightly, mainly because of profit-taking in Asia, to be at 2.7900/10 marks in the afternoon. It opened locally at 2.7830/50 and closed in New York at 2.7835/50. The Australian dollar was at $U50.7250/57, compared with its $U50.7263/70 local opening. Sterling was weaker at $U51.4105/15, compared with its SUS 1.4120/35 local opening and $U51.4120/30 New York finish. In London sterling fell sharply on renewed worries about weak oil prices. The pound dropped to $U51.4095/4110 from Wednesday's close at $U51.4215/25 and to 3.9510/80 marks, after 4.0010/0105. Dealers said sterling was already drifting on profit-taking when it was reported that Saudi Arabia plans to return to production at the top of its O.P.E.C. output quota.