Kiwi slightly firmer

Press, 14 January 1986, Page 30

Kiwi slightly firmer

PA Wellington The New Zealand dollar closed slightly firmer at $U505045/60 on the Wellington foreign-exchange market yesterday after trading quietly. The kiwi dollar opened at SUSOSO3O/50 — 5c weaker than its finish in Wellington on Friday, after a rallying, of the U.S. dollar and further rumours of overseas disinvestment in New Zealand.

One dealer said that while there was good twoway business in the kiwi dollar yesterday, people were reluctant to hold positions in view of volatility.

The kiwi dollar firmed to a day’s high of 50.7 c late afternoon in what dealers said was short covering. One trading bank dealer said the unit stopped at that level when people read reports of a speech by the Prime Minister, Mr Lange, with a gloomy outlook for the economy in 1986.

But another dealer said the market learned nothing new from Mr Lange’s speech and it was already bearish on the kiwi dollar from an economic point of view. The Reserve Bank’s trade-weighted exchange rate index was fixed at 63.0 at 3 p.m., from 63.1 at both 9 a.m. and on Friday.

The kiwi dollar was also worth 72.9 c, 1.25 marks, 34.9 p and 102.4 yen late today.

the U.S. dollar opened 3 pfennigs firmer than its close in Wellington last Friday after rebounding in offshore centres when rumours of Arab disinvestment in the United States were discounted. Dealers said the American dollar was fairly stable in Asian trading yesterday. It closed in Wellington at 2.4650/60 Deutschmarks and 202.60/70 yen, compared, with its opening of 2.4670/00 marks and 202.30/50 yen. Sterling closed at $U51.4500/20 from its $U51.4470/90 opening. The Australian dollar finished at $U50.6924/31 U.S. dollars from $U50.6930/40.