$NZ ‘jittery’

Press, 29 January 1988, Page 20

$NZ ‘jittery’

PA Wellington The New Zealand dollar closed slightly down yesterday after a strong start. Dealers said the market was slightly “jittery” after proposed tax reforms were postponed. The kiwi closed at U566.98/07C after opening at U567.12/22C and closing on Wednesday at U566.85/95C. Its traded high was U567.35C and its low was U566.85C. Dealers said the market reacted with uncertainty to Mr Lange’s comments that the introduction of the economic package and tax reforms announced on December 17 would be delayed. They expected to gauge the effect of Mr Lange’s statement in the offshore trading overnight. “I think it’s going to be a little jittery tonight,” one dealer commented. “It’s offshore interests who are playing the kiwi and we should have feelers out by tomorrow.” On the cross rates the kiwi was worth Aust93.92c, 1.1179 marks, 37.67 p, 85.351 yen and 0.9099 Swiss francs.

The Reserve Bank trade weighted index closed at 67.3, against its open this morning at 67.4 and its closing fix on Wednesday at 67.1. In Sydney the Australian dollar edged up to its high at the close of a lacklustre day on some late corporate buying, dealers said. It closed at U571.52/57C after sitting in a narrow 18point trading range all day. It opened at Wednesday’s closing level of U571.48/53C and slipped to an early low of U571.37c. In New York on Wednesday (early yesterday N.Z. time) the dollar ended at 1.6660/70 marks and 126.95/ 05 yen, down from 1.6730/40 and 127.55/65 at Tuesday's close. The dollar finished a subdued afternoon in London a little above the session lows. "It’s been bouncing around 1.6700 marks this afternoon in reasonably quiet trading,” one dealer commented. It finished at 1.6700/10 marks after 1.6680/90 at the opening, and an intraday low of 1.6660. It had closed last night at 1.6760/70.