N.Z. dollar is well-bid at week’s close

Press, 19 April 1986, Page 21

N.Z. dollar is well-bid at week’s close

PA Wellington The New Zealand dollar closed well-bid at $U50.5520/35 after isolated flurries of activity on the foreign exchange market yesterday. One dealer said the drop in long-term interest rates evident from Thursday’s $5OO million Government stock tender had little effect on the kiwi dollar. But the unit’s rise from SUS 0.5480/90 yesterday morning was attributed to foreign investors funding successful bids for Government stock and exporter demand. The trade-weighted Reserve Bank exchange rate index finished at 66.0 — half-a-point higher than the opening level. Yesterday the New Zealand dollar was worth sAust77.3c, 1.24 marks, 36.4 p and 97.3 yen.

The US dollar traded quietly, regaining ground to finish at 2.2425/35 marks against 2.2260/75 yesterday morning. In yen the US dollar was at 175.95/5 compared with 176.00/10. The Australian dollar also weakened slightly to close at $U50.7139/49 from 5U50.7158/65.

In New York on Thursday (early yesteday, N.Z. time), the American dollar closed mostly lower as a larger-than-expected growth rate of 3.2 per cent for the first quarter gross national product failed to shake the market’s scepticism over United States economic strength, dealers said. The GNP data was overshadowed by recent

weak economic reports, that to many herald a cut in the United States discount rate from 7 per cent, traders said. Such reports included a 2.4 per cent drop in United States March housing starts and a 0.8 per cent decline in March retail sales. The value of the New Zealand dollar yesterday morning, compared with the value immediately before being floated in March last year, was: 1985 1986

Selling rates as quoted by the Bank of New Zealand.

US Mar 1 44c Apr 18 54.0c Sterling 41.15p 35.50p Canada 61.2c 75%c France 4.49fr 3.83fr U.K. $3.43 $4.20 Japan 114yen 95yen Nthlds 1.66g 1.35g S’pore 99c $1.17 Switz 1.25sfr l.OOsfr Germany 1.47dm 1.20dm Aust 62.4c 75.6c