Kiwi slumps to U546.5c low

Press, 11 September 1986, Page 22

Kiwi slumps to U546.5c low

PA Wellington The New Zealand dollar slumped to its lowest since June, 1985, of U546.55C, also hitting all-time lows against several major currencies and on the Reserve Bank’s exchange rate index yesterday. The kiwi rebounded to close at quotes of $U50.4705/ 15 but lower than its 5U50.4733/43 start on the foreign exchange market in Wellington. The exchange rate index, which measures the kiwi

against a basket of currencies on a trade-weighted basis, was fixed at a record low of 57.8 at 1 p.m. and 3 p.m. Its 58.6 level at 9 a.m. and 3 p.m. on Tuesday was its previous low since the index started in 1979. The index was at 62.7 at the time of the dollar’s float in March, 1985. Kiwi cross rates, quoted by one trading bank, fell as far as 0.9737 Deutsche marks, 72.62 yen, 31.62 p and 0.7846 Swiss francs yesterday —- all historic lows. It also hit a day’s low of Aust76.lsc, but

picked up to Aust76.73c at the close.

The U.S. dollar closed lower at 2.0630/45DM from its 2.0660/70 local start, but barely changed at 155.48/58 yen.

The Australian dollar finished easier at $U50.6117/24 against its 0.6128/35 start and sterling closed slightly lower at $U51.4760/70. In Sydney, the Australian dollar finished steady at SUSO.6IIB/25. This compares with Tuesday’s 5U50.6128/35 finish.

The unit was mixed on the cross rates at 1.2636DM from 1.2687, 95.18 yen from 95.62 and 1.0289 Swiss francs from 1.0340. It firmed to 0.4230 p from 0.4133 and $NZ1.2949 from 1.2937.

In New York, the U.S. dollar closed mostly lower on dwindling expectations for interest rate cuts in West Germany and Japan that would match those in the U.S. The dollar ended at 155.50/60 yen against 156.00/10. It also ended lower at 2.0650/60DM compared with 2.0745/55.