$NZ only slightly up in quiet trading

Press, 28 August 1986, Page 26

$NZ only slightly up in quiet trading

PA Wellington The New Zealand dollar closed only slightly higher at 5U50.4920/30 in quiet trade on the foreign exchange market in Wellington yesterday. After beginning at $U50.4910/20 the unit rose to $U50.4940 on corporate buying to cover short positions, but drifted back off, dealers said. The buying was more a result of nervousness about the unit’s direction than anything else, one dealer said. Dealers said the overall view of the market was still that the unit would move lower in the short term. One dealer said there was not much exporter business about as the exporting season was in its quiet phase. Most of the exporting companies had converted their payments back into 1 New Zealand dollars al- < ready, and those that had i not were prepared to wait < for a more favourable I exchange rate. i On the cross rates in < the afternoon, one New

Zealand dollar was worth AustBo.6sc, 1 DM, 33.2 p and 76.3 yen. The unit’s value . as measured on the Reserve Bank’s trade weighted index eased gently to 61 from 61.1 in the morning. The Australian dollar firmed to reach SUSO.6IOO/07 near the close of trade from SUSO.6OBO/87. Sterling was slightly stronger at $U51.4805/15 against $U51.4797/07. Against the mark the U.S. dollar weakened gently to 2.0530/40 from 2.0560/75. The greenback was also easier at 154.90/00 yen from its 155.30/40 opening. In Sydney, the Australian dollar closed almost steady for the second consecutive day in balanced corporate trading. The unit jumped to an early high of SUSO.6U3 on a sAust2o to sAust4o million corporate buying order, but late selling and booksquaring saw it close 1 at $U50.6078/85. It had ’ opened at $U50.6077/84 1 — virtually unchanged 1

from Tuesday’s 5U50.6073/80 close. Dealers said the continued threat of Reserve Bank buying at lower levels kept interbank sellers sidelined, while quiet Asian trading also reduced volume. A trader with a major banking house said the dollar met solid buy orders at SUSO.6OBO, a technical support level. The dollar closed firmer on other major currencies at 1.2500 DM from 1.2442, 94.33 yen from 93.72, and 1.0078 Swiss francs from 1.0003. It was steady at £0.4110. The Reserve Bank’s trade weighted index rose to 50.2 from 50.0 previously, while the ANZ banking group’s index was at 62.40 points from 62.11. The U.S. dollar average hedge settlement rate went to 5U50.6084 from 0.6080. Midland International Australia, Ltd, economist, Helen Camp, said in her weekly market commentary the domestic currency trends and interest rate outlook in the next few months is still far from settled.