Kiwi trades in tight range

Press, 21 May 1987, Page 24

Kiwi trades in tight range

PA Wellington The New Zealand dollar traded quietly within a tight range on the foreign exchange market in Wellington yesterday. The kiwi opened at US5Bc and hovered between 57.90 c and 58.18 c for most of the day before settling on 58.03/10c near the close of trade. Dealers said the New York gold price, which reached a four-year high of SUS4BI an ounce yesterday, was giving strong support to the Australian dollar. In turn, the kiwi was being kept buoyant by the strong Australian dollar.

The Reserve Bank trade weighted index closed at 65.3 against its opening of 65.4 and Tuesday’s close of 65.5.

On the cross rates the New Zealand dollar was worth AustBo.26c, 1.0269 Deutsche marks, 34.39 p, 80.901 yen and 0.8419 Swiss francs.

In Sydney, the Australian dollar closed firmer at U572.15/20c after dropping as low as U571.90c shortly after comments by Industry, Technology and Commerce Minister, Senator John Button, that he would prefer the Australian dollar to be lower in

value against the United States dollar. But the dollar remained well bid and rebounded upwards to the close. It opened firmer at U572.27/32C following offshore support from Japanese traders in London and the United States overnight, from Tuesday U571.86/91C close. Meanwhile, in Tokyo the United States dollar closed little changed due to a lack of fresh factors. The dollar closed at 139.50 yen against 139.50/ 55 in New York and 140.05 at the close in Tokyo on Tuesday. It ended at 1.7695/00 Dm

against 1.7700/10 in New York.

And in York on Tuesday (early yesterday New Zealand time) the American dollar tumbled against most major currencies.

The British pound traded at 5U51.6868 dollars, more expensive than the 1.6818 previously. Other late dollar rates in New York were 1.7708 Deutsche marks, down from 1.7822; 1.4530 Swiss francs, down from 1.4635,