Kiwi well bid

Press, 24 February 1987, Page 23

Kiwi well bid

PA Wellington The New Zealand dollar closed well-bid after a dull session and dealers said they expect firm local interest rates to continue to support the unit.

The local currency finished at U554.98/05C against its 54.93/OOc start and Friday’s 54.85/92C finish. Dealers said the unit traded in a narrow range between 54.85 and 55.10 c during the session and they expect trading to continue in a similar range in the shortterm.

They said local interest rates are expected to remain firm throughout the March tax-flow period and they will continue to support the local currency. Wholesale cross rates for the New Zealand dollar were sAustB2.73, 1.0079 Deutsche marks, 35.89 p, 84.691 yen.

The Reserve Bank trade weighted index closed at 65.5 down from its 65.6 close on Friday. In Sydney, the Australian dollar finished little changed at U566.58/63C on late short covering as the market weighed up the Group of Five

nations* agreement on the US dollar. • l

It had opened firmer at 66.60/65c from Friday’s 66.35/40. In late Australasian trading the US dollar was holding above its New York closing’s after reports the Group of Five agreed a further rapid US dollar fall would be harmful for economic growth. The US dollar was initially bought up in early New Zealand and Australian trading in a thin market. Traders said the market is now waiting on European and U.S. markets for further direction, with the short term outlook of the U.S. dollar weakening.

The Australian dollar edged up to 53.5 from 53.4 on the Reserve Bank’s trade weighted index. It closed at 1.2172DM from 1.2132, 102.50 yen from 102.01, 1.0300 Swiss francs from 1.0126, 43.46 p from 42.91 and $NZ1.2098 from 1.2067.

The ANZ trade weighted index was struck at 66.72 points from 66.76 and the US dollar average hedge settlement rate at U566.56C from 66.41 c.