Dollar eases

Press, 25 February 1986, Page 21

Dollar eases

PA Wellington Negative market sentiment saw the New Zealand dollar ease in steady trading yesterday, according to foreign exchange dealers. The kiwi closed at 5U50.5250/65 down from its opening of 5U50.5280/ 95 and Friday’s $U50.5300/15 close. Dealers said the market was bearish for the kiwi after it failed to climb against the falling United States dollar last week and lost ground against other major currencies.

Recent eurokiwi drawdowns had also failed to push the kiwi up. It traded between U552.90C and U552.10C yesterday.

Fundamental factors still limited how far the kiwi could fall, dealers said. One dealer said the kiwi appeared to have drifted down on sentiment alone, but she questioned whether the currency’s softness was jus-

tified. Although on-call interest rates had eased, term rates were firm and it was too early to say that interest rates would not rise through the . March tax flow period. She also said there appeared to be reasonable interest in Government stock, which may see some capital inflows in March for the S4OOM stock tender settlement. The Reserve. Bank’s trade-weighted exchange rate index fell to 63.9 at 3 p.m. from 64.6 at 9 a.m.

Other wholesale values for the kiwi in late trading were Aust7sc, 1.21 marks, 36p and 96 yen.

The United States dollar closed at 2.2935/45 marks and 182.55/65 yen, compared with its opening of 2.2930/60 marks and 182.30/45 yen respectively. Sterling finished at 5U51.4565/80 from $U51.4520/60. The Australian dollar closed at $U50.7020/30 from SUSO.7OIO/17.