22 Apr 2008

Weak US dollar helps strengthen Papua New Guinea kina

10:35 am on 22 April 2008

The weak US dollar is now slightly aiding the PNG kina against major foreign currencies.

The National newspaper reports the Kina continued to strengthen last week after lying flat the previous week as more funds flowed into the banks.

The kina last week appreciated by about 0.8% against US dollar in the interbank.

The ANZ Bank's weekly update says that more funds from the mines and soft commodity exporters are expected to hit onshore this week.

This means importers should expect good US dollar levels and good levels on other major currencies as the kina continue its upward trend.

The kina will remain weak against the Aussie dollar but will depend on the Central bank's intervention to avoid inflationary pressure that may be exerted from strong a Aussie dollar.