N.Z. dollar moves up

Press, 25 January 1986, Page 21

N.Z. dollar moves up

PA Wellington The New Zealand dollar crept up gradually in quiet trading on the foreign exchange market yesterday, helped on its way by the announcement of firmer interest rates in the Government stock tender. The kiwi closed at $U50.5185/00, up from its $U50.5130/45 opening. Dealers said the local currency was well bid all day and some operators expected later buying interest out of Asia as a result of the stock tender and its flow-through effect on interest rates. Helping underlying support for the kiwi was a statement from the Australian Prime Minister, Mr Hawke, that recent gains by the Australian dollar provided a climate for interest rates to fall. The kiwi strengthened to a mid-rate value of Aust73c in late trading from Aust72.3c in the morning. Other mid-rate values in late trading were 37.3 p, 104.2 yen and 1.26 marks. The Reserve Bank’s trade-weighted exchange rate index was at 64.6 at 3 p.m, up from 64.3 at 9 a.m. but down from 62.7 at, 3 p.m. Thursday. The United States dollar continued to soften on expectations of lower interest rates, closing in New Zealand at 2.4380/90 marks and 201.25/35 yen from its local opening levels of 2.4500/15 marks and 201.90/00 yen. Sterling steadied after recent falls to close in New Zealand at $U51.3865/75, compared with its $U51.3840/55 local opening. The Australian dollar closed weaker at SUSO.7OBI/88 from $U50.7129/36. The value of the New Zealand dollar yesterday morning, compared with its value immediately before it was floated in March, was: Mar. 1 Jan. 24 U.S. 44C 50.8 c Sterling 4Ll5p 36.69 p

The selling rates are those quoted by the Bank of New Zealand. In Europe, sterling tumbled through key psychological barriers after coming under more pressure as the Bank of England failed to intervene while oil prices plunged and the Saudi Arabian oil minister spoke of crude possibly falling to below SUSIS a barrel. Sterling’s trade-weighted index closed in Europe at 74.3 points, a full point off Wednesday’s finish in London and the lowest since last March, reflecting sharp losses against major currencies. The pound ended at SUSL3B2S/35 and 3.3895/3935 marks, compared with a previous finish of 5U51.3940/ 50 and 3.4120/210. Sterling was quoted as low as $U51.3750 and 3.3675 marks on lower oil prices and remarks by the Saudi Arabian Oil Minister, Ahmed Zaki Yamani. Profit-taking near the end of the session helped sterling rebound.

North Sea Brent oil for March delivery was quoted as low as $U517.30/55 before strengthening to just over SUSIB in late trading. In New York, sterling recouped some of its recent heavy losses by the close as players took the British Prime Minister, Mrs Margaret Thatcher’s, reaffirmation of the Government’s interest rate policy and a slight rebound in oil prices as cues to cover short positions and take profits, dealers said. Sterling ended up unchanged against the dollar at 5U51.3910/20 and rallied to about 3.396 marks after failing to 3.3675 earlier in the day from Wednesday’s closing 3.422. With sterling once again in the limelight, little attention was paid to developments on the United States domestic front

There was little impetus to test either end of the dollar’s trading range of 2.42 to 2.48 marks. The United States currency fell to 2.4420/30 marks by the close from 2.4585/00 on Wednesday.

Canada 61.2c 71.8C France 4.49fr 3.81fr H.K. $3.43 $3.96 Japan 114yen 102yen Nethlnds 1.66g 1.40g S’pore 99c $1.08 Switz. 1.26sfr 1.05sfr Germany 1.47dm 1.24dm Aust. 62.4c 71.5c