Kiwi flies high
PA Wellington The New Zealand dollar closed off its peak yesterday after an early surge to a new post-float record of U567.71C. The previous local record was U 567.65 set on March 22, this year. The kiwi was floated in March 1985 at U544.44C.
Dealers said trade was quiet despite the kiwi's bullishness but they warned the currency could easily break through US6Bc over the next few days.
The kiwi closed at U567.64/73C against its open at U567.55/65c and Monday’s close at U567.25/35C. It traded between U567.55c and USG7.7IC.
Dealers said overnight buying from New York pushed the kiwi up to a firmer local opening. They added -that strong local buying interest and high short term interest rates were bolstering the currency. . .
"I think with cash rates where they are there’s no-one who can afford to go short on kiwis,” one commented, adding: that • the kiwU should re-
main well bid over the next few days. A strong Australian dollar was also lending support to the kiwi.
Dealers said that despite the kiwi’s strength, trade had been quiet and the kiwi had hugged a narrow 16 point range.
On the cross rates the kiwi was worth AustBB.B3c, 1.1370 marks, 36.20 p, 84.586 yen and 0.9464 Swiss francs.
The Reserve Bank trade weighted index closed at 65.9, unchanged on its open but firmer on Monday’s closing fix of 65.7.
In Sydney, rising interest rates lifted the Australian dollar higher, consolidating about US76c, in spite of Reserve Bank sales, dealers said.
It closed at U576.20/30C, its highest since early February, 1985, after opening at U576.05/10c from Monday’s close of U575.85/90C.
The U.S. dollar closed in Sydney at 1.6793/00 marks and 124.97/07 yen from New York’s 1,6775/85 and 124.75/
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Press, 4 May 1988, Page 39
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289Kiwi flies high Press, 4 May 1988, Page 39
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