Kiwi up as $US slides

Press, 22 April 1986, Page 24

Kiwi up as $US slides

PA Wellington The New Zealand dollar was at 5U50.5670/85 near the end of moderate afternoon trading on the foreign exchange market yesterday. The unit began the morning at 5U50.5600/15, and dealers said traders short of kiwi dollars bought strongly, boosting it up to 5U50.5655 by 10 a.m. The Reserve Bank trade-weighted index was up at 67.1 from a beginning of 66.9 in the morning. On the cross rates the New Zealand dollar was worth Aust7Bc, 1.24 marks, 36.9 p and 97 yen. The US dollar fell sharply to 172.55/65 yen compared with 175.95/05 in the morning. The Australian dollar was firmer at 0.7205/12 US dollars near the close of trade from the 0.7168/ 75 morning opening. The Bank of Japan bought vast sums of dollars yesterday to prop up the United States currency as selling by dealers pushed the United States currency to a record low of less than 172 yen and 2.20 West German marks. Dealers said the central bank may have bought SUSI billion in the morning alone. It had already spent more than SUSI billion last week in the fight to sustain the unit and curb the yen’s rise. The dollar has fallen more than 30 per cent against the yen since late last year. Dealers said yesterday’s rout proved the American, West German, Japanese, British and French central banks could fight the markets successfully only when the banks were united.