Kiwi ends slightly higher

Press, 25 February 1987, Page 33

Kiwi ends slightly higher

PA Wellington The New Zealand dollar finished slightly higher yesterday after trading in a narrow range in a dull and quiet session. Dealers said the local currency is expected to follow its pattern of the last few trading days and move slightly higher offshore overnight on buying for NZ dollar denominated bonds issued in the United States. The currency closed at

U55.513/20C compared with its 54.97/04C start and 54.98/05c finish on Monday.

Wholesale cross rates for the New Zealand dollar were AustB2.62c, 1.0146 Deutsche mark, 35.83 p, and 84.812 yen.

In New York on Monday (early yesterday NZ time) the dollar moved higher in reaction to the week-end accord to stabilise international exchange rates, despite misgivings that the pact can stop the

dollar’s long-term slide. The US currency closed at 1.84Dm, a strong two pfennigs above the close of 1.8190 on Friday. The dollar rose to 153.70 yen from 153.55 on Friday. Officials from the United States, Japan, West Germany, France, Britain and Canada agreed at a week-end meeting in Paris to stabilise volatile exchange rates. While many traders are sceptical that the agree-

ment can stop the US dollar’s 18-month decline, they were unwilling to risk intervention by central banks to support the currency. The same caution was evident earlier on Monday in Europe, where the dollar was barely changed from Friday. Many European dealers believe the Paris agreement included a secret clause setting exchange rate ranges to be defended.