Kiwi hits high against SUS

Press, 27 January 1988, Page 33

Kiwi hits high against SUS

PA Wellington The New Zealand dollar hit a new post float high in lacklustre trading yesterday.

The kiwi traded up to U567.30C in overseas trading on Monday morning and as high as U567.15C in local trading yesterday before closing at U 567.12/ 22c.

behalf and a reduction in the nominal U.S. trade gap for November have helped improve the dollar’s tone. But many operators are still reluctant to alter long-held

Dealers mentioned some large selling orders in the morning. “Since then, sterling has been looking wobbly,” said a dealer at a U.S bank. Trade-weighted, the

The previous post float high, set in October last year, was U567.03C. The New Zealand dollar was floated at U544.44c in March, 1985. Buying by a merchant bank in Tokyo overnight triggered stop loss orders which pushed the currency to a new high, dealers said.

bearish attitudes. With few external developments and the dollar in a tight range, traders looked to cross-rates for profit opportunities. The dollar finished at 1.6810/20 marks, up from 1.6675/85 on Friday, and at 127.90/00 yen, up slightly from 127.15/25. “There really wasn’t

pound lost two basis points to end at 74.4 after a 74.6 start. Previous close was at 74.7. The dollar closed a touch firmer against the mark, at 1.6765/75 after a 1.6720/30 start and 1.6745/55 previous close. The dollar closed mixed against the yen. It closed firmer at 127.70/80 yen

But exporters repatriating New Zealand dollars to pay tax bills should keep the kiwi firm in the short term, they added. Other dealers warned that a 13 week cyclical trading pattern was coming to an end which meant the kiwi may soon see a correction from its

much excitement. Some month-end (dollar) demand is beginning to show up. But because noone really knows what to do with the dollar, attention was on the crossrates,” said a dealer at one European bank. Because there was no major U.S. economic

against an opening 127.50/60, but easier against Friday’s close of 127.80/90. It spent most of the day in a narrow trading range, until the market was stirred by various rumours ahead of the State of Union speech to be delivered by President

highs. The Reserve Bank trade weighted index closed at 67.4 against 66.9 on Monday. On the cross rates, the New Zealand dollar was worth Aust93.B2c, 1.1248 marks, 37.90 p, and 85.709 yen. The Australian foreign exchange market was closed for Australia Day. In New York, the U.S. dollar ended moderately higher and well within recent trading ranges as positive sentiment failed to translate into aggressive support on Monday (yesterday morning, N.Z. time). . Recent central bank intervention on the dollar’s

news, dealers pondered what new initiatives, if any, President Reagan may make in his final State of the Union speech. Reagan is likely to stress the need for budget reform, improvements in U.S. education and more cash for the Nicaraguan rebels, aides say. In London, the dollar ended mixed after a quiet day of trading in Europe with dealers uncertain about the U.S. currency’s direction. Sterling closed markedly lower, weighed down by expectations of a deterioration in U.K. December trade data, due Thursday (Friday, N.Z. time).

Reagan. There were speculations that Reagan might announce new measures to tackle the U.S. trade deficit, one of the main reasons behind the dollar’s decline in the last two years. But dealers here said they did not put much store in them. Beyond the State of the Union speech, dealers are looking at this week’s U.S. economic data to provide some indication about the dollar’s direction. The figures include preliminary fourth quarter GNP data, due Wednesday (Thursday, N.Z. time), and personal income and consumption figures for December,