Kiwi closes marginally easier

Press, 24 March 1988, Page 32

Kiwi closes marginally easier

PA ; Wellington The New Zealand dollar closed slightly lower yesterday- i after trading quietly jbetween U566.3C and U566.7C. The kiwi dollar closed at U566!40/47c against its open of U566.53/63C and Tuesday's close of U566.37?44c. Dealers said the kiwi dollar . jvas expected to continue range trading near its, present levels in the near term. The [kiwi dollar sat firmly around U566.5c until , the] Reserve, Bank entered j the market as a seller. ! The day’s trade was

dominated ; by speculative sellers! and genuine! exporter] buyers, ! dealers said. | ! I i; “The kiwi is performing like a cracked reebrd! It’ll stay firm for a bit longer yet,” one said. ; ! j | A report which quoted a Berl] economist saying lit was inevitable that! the Government would depreciate the kiwi dollar by tip to 15 jper cent later! this year had no impact on the market. I j “Traders have heard jit jail before. That soijt bf ’ prediction is not too seriously these days,” one dealer said. I | ; j On the cross the kiwi dollar] was i worth

AustB9.6sc, 1.1244 marks, 36.28 p, 84.430 yen and 0.9291 Swiss; francs. | The I Reserve Bank trade) weighted index eased to 65.7 at 3 p.m. against its 9 a.m. fix of 65.8. ! ■ In ISydney, jthe Australian dollar i closed lower, falling back bblow US74c after I Reserve! Bank sales near i two year highs of U574115/20C, dealers said. |Ths dollar! ended at U573,'95c down from its US74 10/15c opening but still ahead of Tuesday’s closejhere 0f i t1573.68/73c. It finished ;ipl New York overiiight at US7j4.il/16c. In Slate afternoon trading I the Reserye conl : ! ! I I ! ■

firmed it had "increased its testing of the trend in the local dollar" after dealers earlier] reported Reserve sales above U574.15c. I The U.S. i dollar closed in Sydney •at ■ 1.6925/30 marks and 1126.90/00 yen from New York’s 1.6910/ 20 and 126.95/127.05. The Australian dollar fell to a low of U 573.90/ 95c before I recovering (to its close, but the currency was well (Supported against a backdrop of favourable economic fundamentals, dealer? said.

The dollar edged back to 54.4 points on the Reserve Bank’s trade weighted index! from a I ' i

peak of 54.5. It was up from 54.2 yesterday. In New York on Tuesday (early yesterday N.Z. time) the U.S. dollar finished little changed, in listless trading, leaving cross rates and the highyield currencies to grab the spotlight once again. Dealers made a; halfhearted attempt to push the dollar down to 126.85 yen, where the Bank of Japan bought dollars' in Tokyo. But otherwise ! the U.S. currency held little interest. i J It ended I unchanged, at 126.95/05 yen, and at 1.6910/20 marks, up slightly from 1.6888/98 at Monday’s close.