Kiwi still strong

Press, 25 September 1987, Page 10

Kiwi still strong

PA Wellington The New Zealand dollar traded in a narrow range yesterday, and closed at U564.40/45C. That was close to its opening, U564.38/45C.

Dealers said the unit drifted up after offshore selling took it down early in the day. "There was some selling pressure out of Asia but it did not amount to much,” one said.

That was after the kiwi dollar was dealt at a new post-float high of U564.79c in offshore trading overnight. The previous high was U564.70C on Tuesday.

Quiet trading was expected today with the kiwi perhaps benefiting from a weakening in the U.S. dollar overnight.

The Reserve Bank’s trade weighted index closed at 72.8, against 72.9 in the morning and 72.1 a week ago. In Sydney an early recovery saw the Australian dollar push back through the US73c level in what dealers described as a non-eventful day.

The Australian currency closed at U573.12/22C, up from Wednesday’s finish of 72.90/95C, but off the opening of 73.20/25C.

The U.S. dollar fell to 143.67/77 yen at the close and 1.8178/88 marks from New York's close of 143.90/ 00 and 1.8220/30, despite some Japanese buying.

The Australian dollar closed at SNZLI437 from Wednesday’s' close of $NZ1.1406.

In New York on Wednes-

day (early yesterday, N.Z. time), the American dollar closed mostly easier in quiet, narrow-range trading, depressed by American economic data showing a pickup in inflation at the consumer level and a steep drop in orders for durable goods. Consumer prices rose 0.5 per cent in August, twice the forecast of most economists, while durable goods order fell 3.1 per cent.

But the dollar finished above the day’s lows, and dealers expect it will trade near current levels, or possibly move higher, ahead of meetings later this week of economic policy makers in Washington. The dollar closed at 1.8220/30 marks and 143.90/00 yen, down from 1.8240/50 and 144.30/40 on Tuesday.