Kiwi beats US52c
PA Wellington Unexpectedly heavy domestic buying took the New Zealand dollar over US52c on the foreign exchange market yesterday, dealers said.
The unit opened at $U50.5160/67, and traded around that level for some time before exporter buying edged it up to 5U50.5190, a technical resistance point, dealers said. Once the kiwi dollar broke through the resistance point it triggered heavy short covering and shot over US52c to reach a high of U552.2C. However, profit-taking came in at the upper levels and the unit eased back to settle at $U50.5208/15 near
the close of trade. Dealers said the unit was now likely to stay around US52c, or ease back rather than rise further over the next few days. Late yesterday wholesale cross rate values for the New Zealand dollar were Aust7B.3c, 1.04 Deutsche marks, 36.4 p and 85 yen. In Sydney the Australian dollar closed steady in subdued trading at $U50.6643/48 as the currency marked time after its recent sharp appreciation.
The dollar reached a high of just over $U50.6650 early in the day after opening at $U50.6643/48. It closed on Wednesday at $U50.6645/50 and almost unchanged in
New York at $U50.6646/51. The market was buoyed by reports of the Australian Bureau of Statistics which
said there was little change expected in the November balance of payments current account deficit figures. The November deficit showed a decrease of almost sAust9oo million to sAust6Bs million. Traders said Reserve Bank selling is still likely to be a key feature of the market in the days ahead if the dollar pushes higher. The dollar was marginally easier on the cross rates at 1.3390DM from 1.3428, 108.60 yen from 108.88, 1.1306 Swiss francs from 1.1343 and 5NZ1.2758 from 5NZ1.2857 and little changed at 46.50 p.
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Press, 19 December 1986, Page 22
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293Kiwi beats US52c Press, 19 December 1986, Page 22
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