Kiwi quiet and slightly easier

Press, 28 January 1988, Page 25

Kiwi quiet and slightly easier

PA Wellington The New Zealand dollar eased slightly in quiet trading yesterday in what dealers described as “a slight correction” after its record-breaking rise this week. The kiwi closed at $U50.6684/93 against its opening at $U50.6705/15. Its traded high was 0.6708 and its low was 0.6668. Dealers said that after the kiwi broke its postfloat records earlier in the week some people found themselves long on the currency. However, one dealer said the kiwi was still finding buyers. The United States dollar was stable against the yen yesterday but lost ground against the mark. Dealers said the lack of substance in President Reagan’s address to Congress on Tuesday had disappointed the market, which wanted solid evidence the United States was ready to address its huge deficit. “He appears to have lost his marbles,” one commented. He added the dollar needed a good US Gross National Product figure to bolster it. Rumours that the Bundesbank was selling off some of its dollars also unsettled the market. On Tuesday the dollar closed at 1.6810 marks and 127.85/95 yen in London and at 1.6730/40 and 127.55/65 in New York. On the cross rates the kiwi was worth Aust93.73c, 1.1157 marks, 37.61 pence, 85.352 yen and 0.9052 Swiss francs. The Reserve Bank

trade-weighted index closed at 67.1, down on its opening at 67.5. It closed on Tuesday at 67.5. In Sydney the Australian dollar closed higher on a late buying rally in thin business as traders slowly returned to the market after the Australia Day holiday, dealers said. The local dollar closed at 5U50.7148/53, above its opening of 0.7136/41, and barely steady from Monday’s 0.7150/55 close. It closed at 0.7143/ 48 in New York overnight. Dealers said trade in the local and United States dollars was quiet ahead of the release of United States fourth quarter Gross National Product figures. The American dollar was mixed at 1.6675/85 marks and 127.60/70 yen from its New York close of 1.6730/ 40 and 127.55/65. It opened at 1.6732/37 and 127.60. Dealers said traders were reluctant to take new positions despite expectations of strong G.N.P. growth in the United States Elders Finance, Ltd, said G.N.P. forecasts ranged between 3.5 and 4.0 per cent, from 4.3 per cent previously, adding that the figures should give the United States dollar “the final boost to break the 127.80 yen level which has been a stubborn resistance”. If the United States dollar rallies on the figures, the Australian dollar will be nudged lower but could trade up to 0.7170 before the data are released, dealers said.