Kiwi firms again

Press, 1 December 1987, Page 50

Kiwi firms again

PA Wellington The New Zealand dollar briefly broke through 5U50.65 before falling back, and dealers expect it to rise further. ■ The kiwi closed ‘ at $U50.6480/90 against its opening of 0.6410/20, and Friday’s close at 0.6382/92. It traded up to 0.6508 and down to 0.6368. Dealers said they expected the kiwi to continue to firm and one added that traders who bought it expecting its rise to continue were fuelling its rally. “The market generally takes the attitude of buying it

in the morning and selling in the afternoon,” he said. . He said overseas traders were still attracted by New Zealand’s interest rates and its resilience after the sharemarket plunge. Dealers said the general weakness of the U.S. dollar was not a factor in the kiwi’s rise. In Sydney the Australian dollar gained more than 100 points to close at 5U50.7047/ 52 as the U.S. currency fell to record post-war lows. Most of the local dollar’s gains were posted in a volatile morning session which saw Wide swings between 0.6990 and 0.7060. Afternoon

trade was quiet as the Australian currency consolidated near the highs of the day. In Tokyo the dollar plunged to record post-war lows in Tokyo yesterday before Japan’s central bank stepped into the market to prevent a further decline. Doubts about the ability of the U.S. Congress to act quickly to reduce the American budget deficit triggered heavy selling, dealers said. Tokyo stock prices tumbled in sympathy with the dollar, as investors reckoned that the strong yen would make it tough for Japan’s exporters to earn money on their overseas sales.