$NZ staying firm

Press, 15 January 1986, Page 27

$NZ staying firm

PA Wellington The New Zealand dollar finished slightly firmer on the foreign-exchange market in Wellington yesterday after trading quietly in a narrow range. The unit closed at $U50.5055/70 from its

$U50.5045/60 opening. Dealers said the kiwi dollar moved up on shortcovering in late afternoon trading — the same pattern as Monday. One trading bank dealer said the currency seemed to be locked into a range between 50.2 and 51 U.S. cents.

A ?40 million Eurokiwi drawdown on Monday was expected to lend some support to the kiwi. It improved on the cross rate against the Australian dollar, after the release of the sAustlO33M current account deficit for December, a higher figure than ex-

pected. The kiwi dollar was worth 73.2 Australian cents in late trading, from 72.5 c in the morning.

There was not much corporate activity and most market flayers were sitting on the sidelines before this week-end’s meeting of the “Group of Five” Finance Ministers. The Reserve Bank’s trade-weighted exchange rate index was fixed at 63.3 at 3 p.m., up from 63.1 at 9 a.m. and 63.0 on Monday afternoon.

Other late New Zealand dollar cross rates were 1.25 marks, 35.1 p and 102.8 yen. The Australian dollar closed weaker at $U50.6910/ 17 from its 0.6940/47 opening.

The U.S. dollar picked up in late New York, New Zealand, Australia, and Asia yesterday on expectations of more good economic reports to come this week.

It closed in Wellington at 2.4755/65 marks and 203.05/ 15 yen from its opening of 2.4640/55 marks and 202.65/ 75 yen. Sterling finished easier at $U51.4410/25 from $U51.4455/75. In Europe overnight sterling was easier after having been buffeted by renewed speculation that crude oil prices might continue to drop and that British base lending rates could rise for the second time this year. The American dollar rose against most major currencies in trading at home and abroad. Gold fell. The dollar finished higher in the United States even though rumours sent the currency on a roller coaster ride during the session.