$NZ higher

Press, 10 August 1985, Page 23

$NZ higher

PA Wellington The New Zealand dollar equalled its post-devaluation record high against the United States dollar, set on August 6, on the foreign exchange market yesterday. The Kiwi dollar reached a high of $U50.5325/35 by the mid-afternoon, but later eased to $U50.5315/22 from a $U50.5315/25 local opening. Dealers said the unit was well-supported, mostly by off-shore investors, in dull trading. One dealer said the currency was well-sought-after outside New Zealand’s time zone. He said that, considering the present monetary policies and the predictions on the current account by the Minister of Finance, Mr Roger Douglas, the Kiwi was perhaps not as over-

valued as exporters had said. The sharp fall in the value of the United States dollar during the last six months had seen most currencies appreciate against it, along with the Kiwi dollar, by about 20 to 30 per cent. Given continued bearishness in the United States unit, the dealer predicted that the Kiwi would trade within a 5U50.5050 to $U50.5450 range for the rest of the year. The Reserve Bank indicative dollar exchange rate index, which measures the currency against those of New Zealand’s main trading partners, struck yet another record post-de-valuation high at 69.4, compared with its 69.3 opening. The index was at 63.3 four weeks ago and 62.7 before the float. The Kiwi dollar most noticeably revalued against the Australian dollar, reaching 75.4 c Australian at 4 p.m. compared with 62.4 e before tbe float.