Volatile dollar
The New Zealand dollar closed little changed from its opening level after a volatile trade, reflecting political uncertainties and a strengthened United States dollar.
The kiwi closed at U564.36/46C against an opening at U564.43/53C. The currency swung through a 90-point range, with a traded low at U563.70C before it recovered later in the day.
Dealers said the sentiment around the kiwi dollar was weak following fresh reports of friction between Prime Minister David Lange and Finance Minister Roger Douglas. “For now the kiwi is at the mercy of the politicians, both in New York and Wellington,” one dealer said. The Reserve Bank’s trade
weighted index was fixed at 60.4 at 3 p.m., compared 60.6 at the same time the previous day.
On cross rates, the kiwi dollar finished at A74.32C, 1.1327 Deutschmarks, 34.96 pence, 79.527 yen and 0.9523 Swiss francs.
The Australian dollar tumbled by almost USlc, dragged down by overnight gains in the U.S. currency, dealers said. The local currency closed here at U 586.52/ 59c, little changed from its opening level at U586.50/55 but sharply down from yesterday’s finish here at U587.39/44.
Dealers said there was little activity in the local unit after the overnight slump, which was driven by the U.S. dollar.
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Press, 9 December 1988, Page 21
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207Volatile dollar Press, 9 December 1988, Page 21
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