Kiwi firms slightly
PA Wellington The New Zealand dollar closed slightly firmer yesterday but dealers said the market was still uncertain of its direction. The kiwi closed at U566.13/21C against its open at U565.85/95c and Thursday’s close at U566.22/30C. It traded between U565.88C and U566.35C. Dealers said the kiwi has been pulled two ways this week and a short squeeze this afternoon saw a brief rally to U566.35c but it ended up drifting back down. “Someone’s shot it by the look of it,” one commented. He expected it to keep range trading between U565.50C and U 567.00, having tested both limits five times over the past few weeks Dealers ' added that after surviving the pressure caused by conflicting signals from Government over tax reforms, the kiwi was unlikely to make any sudden moves.
Only a dramatic move from the Government or a significant amount of disinvestment by the Japanese was likely to bring it down.
The U.S. dollar has been stable all week but trade in the currency has been listless. Dealers said the market was beginning to believe it had bottomed out and might start investing in it once again.
On the cross rates the kiwi was worth Aust92.47c, 1.1325 marks, 37.97 pence, 86.286 yen and 0.9310 Swiss francs. The Reserve Bank trade weighted index closed for the week at 67.2, up on its opening fix this morning at 67.0 and unchanged from Thursday’s close. It finished last week at 66.8. The Australian dollar closed steady against the U.S. dollar but continued to edge higher against other major currencies on firm support, dealers said. The local dollar closed at U571.55/60C, unchanged from Thursday and marginally up from an early U571.40/45C. Most of its gains were against other currencies, rising to 53.3 on the Reserve Bank’s trade weighted index from 53.1 on Thursday. It rose to 93.29/40 yen from 93.02/ 13 and 1.2240/56 marks from 1.2166/81. In Tokyo, the dollar ended firmer The dollar closed at 130.53 yen and 1.7125/30 marks against 130.20/30 and 1.7120/30 at New York’s Thursday close.
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Press, 20 February 1988, Page 26
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340Kiwi firms slightly Press, 20 February 1988, Page 26
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