$NZ shade easier

Press, 1 February 1986, Page 21

$NZ shade easier

PA Wellington The New Zealand dollar closed slightly easier at $U50.5345/60 on the Wellington foreign exchange market yesterday. The kiwi dollar had opened at $U50.5355/70 and traded in a narrow range between U553.50C and U553.75C. One dealer said that many traders, having squared their books for the end of the month, seemed content to sit back watching the United States dollar continue its slide. They were waiting for the new week to reassess their positions. Sporadic profit-taking kept a lid on the kiwi yesterday, but dealers were still predicting it to advance to US54c because of the weak United States dollar, firm domestic interest rates and the local export season. The kiwi closed at midrate wholesale values of Aust74.9c, 37.8 p, 102.9 yen, and 1.27 marks.

The Reserve Bank’s trade-weighted exchange rate index was at 66.0 at 3 p.m., down slightly from 66.2 on Thursday, but up from 64.6 a week ago.

The United States dollar plunged to 191.90/00 yen after opening at 192.55/ 65. It - also finished at 2.3680/90 marks from 2.3730/45. Sterling continued to firm after its recent fall, closing at 5U51.4190/05, compared with its

$U51.4145/60 opening. The Australian dollar closed steady at $U50.7150/57 from $U50.7153/60. The value of the New Zealand dollar yesterday morning, compared with its value immediately before it was floated in March, was: Mar 1 Jan 31 US 44c 53.1 c Sterling 41.15 p 37.47 p Canada 61.2 c 76.3 c France 4.49 fr 3.855 fr H.K. $3.43 $4.14 Japan 114 yen 102 yen N’lands 1.66 g 1.42 g S’pore 99c $1.13 Switz. 1.26 fr 1.07 fr Germany 1.47dm 1.26dm Aust 62.4 c 74.4 c The selling rates are those quoted by the Bank of New Zealand.

In New York, on Thursday (early yesterday, New Zealand time), the American dollar closed mostly lower as the yen again led-a charge against the currency. "Dollar sentiment is so bearish that not even good news can help the currency right now,” said one dealer. And the dollar received a

spate of bad news in a less-than-expected 0.9 per cent increase in United States December leading economic indicators and a greater-than-expected widening of the monthly merchandise trade deficit to a record 517.378. The dollar dropped to 192.45/55 yen — its lowest level in seven years — from Wednesday’s finish of 194.05/ 15.

Sterling rose to $U51.4210/ 20 from $U51.4025/35, and to 3.372 marks from 3.358. In London, the American dollar closed around a pfennig easier against the mark because of market pessimism about the health of the United States economy. . It ended at final quotes of 2.3780/90 marks, compared with an opening 2.3900/10 and Wednesday’s close of 2.3870/85. Sterling firmed on the dollar’s weakness, ending at $U51.4095/4105 after an opening $U51.4022/32. The pound also gained some ground against the mark, ending at 3.3480/3545 marks after an opening 3.3460/3510.