$NZ loses nearly 2c

Press, 14 February 1986, Page 10

$NZ loses nearly 2c

PA Wellington The New Zealand dollar plummetted about US2c in volatile trading on the foreign exchange market yesterday. The kiwi closed at quotes of $U50.5290/05, sharply down on its opening level of 5U50.5445/70. The actual trading range was U554.50C to U552.45C, according to one bank.

Dealers said the dive started with large overseas selling, catching the market holding long positions in the currency. New Zealand sellers jumped on the back of the sell-off and exporters withdrew their buying orders. The Reserve Bank’s trade-

weighted exchange rate index fell to 66.5 at 3 p.m. from 67.7 at 9 a.m.

Other wholesale values for the kiwi in late trading, with morning values in brackets, were: Aust77.lc (79.75), 1.25 marks (1.29), 37.5 p (38.6) and 98 yen (101.6),

The kiwi’s weakness was accentuated by the US dollar’s continued softness against the mark and yen.

The United States dollar closed in New Zealand at 2.3625/35 marks and a new seven-year low of 185.05/15 yen, from its local opening levels of 2.3665/80 and 186.60/70.

Sterling finished barely changed at SUSI.4UO/20,

compared with its $U51.4105/ 15 opening, and the Australian dollar closed at $U50.6863/70 from $U50.6840/47. Overseas, the American dollar fell against all major currencies except the pound and Canadian dollar on Wednesday and dropped to its lowest price against the Japanese yen since late 1978. The dollar fell 3.35 yen in Tokyo to 186.55 yen, its lowest level there since November 2, 1978. Later, in London, the dollar was even lower at 186.18 yen, down from 187.40 yen on Tuesday. In New York, the dollar finished at 186.375 yen, down from 187.40 yen late on Tuesday.

In London, the dollar rose against the pound, which some analysts attributed to the declining market for oil, one of Britain's major exports. It cost $U51.4130 to buy a pound, cheaper than the 5U51.4145 it cost late on Tuesday. In late New York trading, the pound cost 5U51.4130, compared with $U51.41075 the previous day. In New York, late dollar rates compared with levels late on Tuesday included: 2.3624 West German marks, down from 2.3740; 1.9650 Swiss francs, down from 1.9825; 1.39875 Canadian dollars, up from 1.39705; and 7.26705 French francs, down from 72.850.