Kina appreciates 0.3%

Business, Normal

THE kina appreciated 0.3% in the interbank market, thanks to some support from the Central Bank on New Year’s Eve.
The local currency remained firm against US dollar last week but depreciated against other major currencies, except against Japanese yen and the British pound, which gained.
ANZ, in its weekly report, said the weak kina crosses reflected a strong US dollar against a basket of six major currencies.
The greenback gained grounds against the basket of currencies on a stronger-than-expected weekly US initial jobless claims report and on views that the Federal Reserve may start raising interest rates this year.
The kina-Aussie dollar cross further declined from late December falls last Thursday after strong Australian sales figures stirred up talk of another Australian cash rate hike next month.
In interest rates, 28 days bill rate declined by 17 basis points to 4.98% last week on surplus liquidity, still a level seen 12 months ago.
Bill rates for other tenures also declined.
Central bank offered additional bills in last week’s auction on top of the maturity.
Investors compete to ensure that surplus liquidity held in their books earn some interest. Auction was over-subscribed.