N.Z. dollar stronger at $US0.54

Press, 11 February 1986, Page 26

N.Z. dollar stronger at $US0.54

PA Wellington The New Zealand dollar closed stronger at $U50.5400/15 on the foreign exchange market, compared with its $U50.5330/45 opening yesterday.

Dealers said the local currency moved up steadily most of the day on sporadic exporter covering and continued to be underpinned by strong domestic interest rates.

Having passed a perceived resistance level at US53.Bc, the kiwi accelerated upwards quickly in late trading to more than USS4C.

“The failure of the United States dollar to rally on favourable economic figures over the weekend convinced people that the kiwi was a good buy against the United States dollar and positioned themselves accordingly,” said one dealer. The Reserve Bank’s trade-weighted exchange rate index firmed to 67.0 at 3 p.m. from 66.7, both at 9 a.m. yesterday and 3 p.m. on Friday.

Other wholesale values for the kiwi in late trading were Aust77.7c, 1.29 marks, 38.7 p and 102.7 yen.

With the lunar new year holiday in Hong Kong and Singapore, trading in the major currencies was generally subdued. But sterling slumped yesterday morning nearly USlc in the thin market following a resignation call against the British Prime Minister, Mrs Thatcher, from a Sunday newspaper which previously supported her. Dealers said sterling sell orders came in from New York and sterling fell to $U51.3850. It recovered when Tokyo opened and it closed in New Zealand at $U51.3920/40, slightly easier than its $U51.3940/60 local start.

closed at 2.4000/15 marks and 190.50/65 yen from its 2.4030/60 marks and 190.45/65 yen opening.

The Australian dollar finished barely changed at $U50.6932/39 from its $U50.6934/44 opening.