N.Z. dollar moves up

Press, 31 January 1986, Page 10

N.Z. dollar moves up

PA Wellington High interest rates and continued exporter support saw the New Zealand dollar close stronger at $U50.5345/60 on the foreign exchange market yesterday, compared with its $U50.5285/00 opening. Dealers said that although U553.5C was seen as a psychological barrier for the kiwi dollar, it would only be temporary and its next target was US54c. The currency was supported by a slight firming of interest rates, with call rates around 20 per cent

and 90-day commercial bills near 24 per cent. Dealers said export business, usually high at this time of the year, and some overseas buying interest had also helped the kiwi dollar. Earlier this week it had been thought that normal month-end importer transactions could see the kiwi dollar being sold. But one dealer said that importers had indicated they had already covered their interests for at least a month or two ahead. The United States dollar failed to rebound after the Bank of Japan announced a discount rate cut.

The kiwi dollar has, however, been sold down on overseas profit-taking the first two nights this week and on Wednesday night traded at $U50.5285/00 throughout the London Exchange’s hours.

The Reserve Bank’s trade-weighted exchange rate index rose to 66.2 at 3 p.m. from 65.7, both at 9 a.m. and 3 p.m. on Wednesday. Other wholesale values for the kiwi dollar in late trading were Aust74.9c, 1.28 marks, 38.2 p and 103.7 yen. The United States dollar closed at 193.80/90 yen, up slightly from its local opening at a new sevenyear low of 193.65/75. It also closed slightly firmer at 2.3900/10 marks from 2.3890/05.

In Tokyo, the United States dollar weakened further against the Japanese yen, closing at 193.90 yen, compared with Wednesday’s 194.30 yen finish.

In New York, the yen firmed to 194.05/15 to the dollar from 195.10/20, but the dollar rose to 2.3950/60 marks from 2.3920/30.