Kiwi still climbing
PA Wellington The New Zealand dollar rose in steady trade to close higher against its opening level yesterday and is expected to rise further in the short term.
The kiwi dollar closed at U565.35/44C after reaching U 565.58 against its start of U564.80/87 and its close on Monday of U565.28/35C. This compares with its Monday post-float high of U565.65C. Dealers said the kiwi shot up after the Finance Minister, Mr Douglas, said in a statement that he had no plans to talk publicly about the dollar’s value.
He had been asked by journalists for his reaction to market speculation that he would try to talk down the dollar during a London speech. Mr Douglas spoke of his determination to bring inflation down and get more efficiency in social policy spending. Dealers said that if this was received well in Britain, it would probably boost confidence in the kiwi. With local Interest rates still relatively high and rumours of more New Zealand
denominated Euro-Bond issues, the kiwi was likely to be well underpinned in the medium-term.
Cross-rates for the New Zealand dollar were Aust9o.99c, 1.2032 marks, 40.17 pence, 96.087 yen, and 1.0025 Swiss francs. The Reserve Bank tradeweighted index eased to 74.7 from its 9 a.m. fix of 74.9 and its Monday close of 75.2. In Sydney yesterday the Australian dollar closed higher, briefly breaching US72c until selling, believed to be by the Reserve Bank, brought the unit off its day's highs. The dollar closed at U571.87/92C, up from Monday’s finish in Sydney of U571.45/50C, against a softer
U.S. dollar, and early buying support out of Wellington. The Australian dollar eased to $NZ1.0960 from 5NZ1.1062 on Monday. In New York on Monday (early yesterday, N.Z. time), the United States dollar surrendered modest gains scored in Asia and Europe to close slightly lower after a day of dull and uneventful trading. Despite heightened tension in the Gulf, where Iraqi jets attacked four Iranianchartered tankers, the dollar was unable to breach 1.85 marks and 147.50 yen,
By day’s end the dollar had fallen to 1.8390/00 marks and 146.50/60 yen, compared with 1.8450/60 and 146.80/90 at Friday’s close.
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Press, 7 October 1987, Page 37
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357Kiwi still climbing Press, 7 October 1987, Page 37
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