Uncertain kiwi holds

Press, 5 March 1988, Page 24

Uncertain kiwi holds

PA Wellington The New Zealand dollar was little changed in listless and extremely thin trading yesterday and dealers said the market was still confused about the currency's direction.

The kiwi dollar closed at U566.31/39C, barely changed from its open at U566.33/40c. It traded between U566.38c and U566.15C. Dealers said there was some early confusion after a $lOO million yankee-kiwi issue which matured and was not renewed had been sold into the market overnight. However, one said the kiwi dollar had weathered the pressure and kept to its narrow trading range and it was still fairlv well bid.

“There's lots of buying orders around,” she said.

."Exporters are interested and there are a few corporates short.”

On the cross rates the kiwi dollar was worth Aust9l.s3c.

1.1238 marks, 37.48 p, 85.699 yen, and 0.9311 Swiss francs, The Reserve Bank trade weighted index closed the week at 66.6, unchanged from its opening fix. but slightly firmer on Thursday’s close at 66.5.

In Sydney the Australian dollar finished little changed at U572.45/50C, consolidating

on its recent gains based on overseas investment in bonds and Eurodollar raisings. The close was marginally down from its U572.50/55c opening and was near Thursday's close of U572.40/45C. A $l5O million selling order near U572.50C led the currency to its day's lows of 72.33 c, said State Bank of South Australia's senior dealer, Mr Martin Thurgarland.

The Australian dollar ; closed steady on the Reserve ; Bank's trade weighted index ' at 53.6. It finished at 1.2275/ I 90 marks against Thursday's ; 1.2288/04 and 93.60/72 yen : from 93.54/65. In New York the United States dollar ended mixed against most key currencies on Thursday (early yesterday morning. New Zealand time) in apathetic trading which money dealers attributed to a lack of influential economic news.

The United States dollar . closed at 1.6940/50 marks! and 129.15/20 ven, down I from 1.6960/70 and 129.35/45.' on Wednesday.

“It was so quiet today. The market is waiting for the next trade figures." said Mi; Toshihiko Masaki, a foreign exchange trader at the New York branch of Japan's Sanwa Bank.

The Commerce Department is scheduled to report the January merchandise trade deficit and the fourthquarter result on March 17. The deficits over the previous two months have shown a decline, easing ; pressure on lhe dollar. ; |

Some traders; also are focusing on the department's March 15 release 1 of the 1987 fourth-quarter I current account balance, which measures foreign trade in goods and services.

In the third quarter, the service portion of that statistic showed a' deficit for the first time, and {that deficit was expected to; increase in the fourth , quarter. The amount of increase could put pressure on the {dollar. In London ithe United States dollar closed firmer at 1.6965/70 marks) and 129.17/ 27 yen after a ! quiet day with some half-hearted testing of the upside arid dealers saw little change today. Sterling was. the focus of interest, with the Bank of England intervening to prevent; it rising above the unofficial three njark ceiling, dealers said. The Bank was said; to be offering sterling for three marks'; in the morning. It closed atj2.9970/3.0005 marks. I