Kiwi looks stable around US67c

Press, 9 March 1988, Page 37

Kiwi looks stable around US67c

PA Wellington ■ The New Zealand dollar) closed firmer but in the middle of its trading range yesterday and dealers expect it to range trade around US67c for the rest of the week. The kiwi closed at U566.84/91C against its open of U566.65/75c and Monday’s close of U566.75/85C. It ranged between U566.65C and tJS67.OSc during the day, ! Dealers expect the kiwi tb continue testing new highs while trading between •- U566.60c and U567.20c in the medium

term. I “The bias of the kiwi is still very much up in line with the stronger sterling and Australian dollar and a softer U.S. dollar,” a senior Westpac' dealer said. Dealers said the currency was safe from any sharp downward■ swing as long -as the 90 day commercial bill rate remained 5 per cent above the real rate of (inflation. i “At the moment there’s a 2 per cent buffer in there," one said J ( On the cross i the kiwi was worth Aust9l.49c, 11.1213 marks, 36.72 p, 85.500 yen and 0.9250

Swiss francs. The Reserve Bank i trade weighted index i closed at 66.6 against its 9 '■ a.m. fix of 66.7. In New York on Mon- i. day (early yesterday N.Z. I time) the dollar slipped in ; late trading here today on what was described by , dealers as a dull market. ( It closed at 127.85 Japanese yen against Fri- i day’s 128.80 yen, 1.6770 ( Deutsche marks against ; 1.6900 marks, 1.3840 Swiss ' francs against 1.3920 ■ francs, 54.99 p against s 56.35 p and 5.6765 French francs against 5.7190 • francs. Gold also slipped 10c an ,

ounce to close at $U5437.30. In London, the pound closed at more than three marks for the first time since September 1986 after a steep rise which dealers said looks set to continue tomorrow. "Just about everyone was trying to climb on the back of it today,” said one analyst with a British bank after seeing sterling gain over four pfennigs in often hectic trading. The dollar however lost ground, partially due to sterling’s strength but also because of growing unease about January’s U.S. Trade figures due on

March 17, dealers said. The dollar closed down at 1.6750/60 marks from the opening 1.6890/95 and at 128.02/12( yen from 128.80/90. | The story of the day was the strength of sterling’s push through the unofficial 3.00 mark level, dealers said. ( In the space of just an hour, the pound had gained over three pfennigs and went on to notch up further gains during the European, afternoon. It closed up at 3.0435/ 80 marks from the opening 2.997/3.000 after just failing to push through 3.05 marks. ' I