Dollar easier at US53

Press, 20 February 1986, Page 25

Dollar easier at US53

PA Wellington The New Zealand dollar closed easier on the foreign exchange market yesterday at $U50.5360/75 after opening at $U50.5405/20. Dealers were mixed in assessment of the dollar’s short-term potential although most said it had been a fairly steady trading day. One dealer said importer covering had predominated, giving the dollar a softer look in the afternoon. The Reserve Bank’s trade-weighted exchange rate Index was back at 3 p.m. to 65.5 from 65.7 at 9 a.m. On the cross rates yesterday afternoon, the New Zealand dollar was worth (with the morning’s opening values in brackets): Aust76c (75.9), 1.23 marks (1.25), 36.9 p (37.6) and 95.8 yen (96.7). The United States dollar closed around 2.3080/00 marks and 179.10/30 yen — another loss of ground on its morning opening at 2.3245/60 marks and 180.05/15 yen. The Australian dollar closed around $U50.7055/ 62, sliding back on its morning opening at 1U50.7073/80. Sterling closed around $U51.4430/55 - a strong rise against its local close on Tuesday at $U51.4168/78. In New York, the American dollar fell against most major currencies after a shortlived rally against the Japanese yen. Dealers linked the drop to a perception that the Reagan Administration wants the United States dollar to decline further. The dollar stemmed an eight-day slide against the yen in Tokyo, rising to 181.75 yen from 180.75 on Monday. But the rally fizzled later in London, where

the dollar fell back to 181.125 yen, and by the time trading closed in New York, the dollar was quoted at 180.325 yen. The dollar fell against key European currencies in late New York dealings after a mixed showing in Europe.

Other late dollar rates in New York, compared with levels late on Tuesday, included: , 2.32275 West German marks, down from 2.3390; 1.9185 Swiss francs, down from 1.9250; 1.39675 Canadian dollars, up from 1.39495; and 7.1500 French francs, down from 7.17875.