$NZ stronger

Press, 15 February 1989, Page 40

$NZ stronger

PA Wellington The New Zealand dollar closed at U562.22/32c yesterday after looking strong all day.

The dollar opened at 61.97/ 07 in the morning slightly lower than Monday’s close of 62.05/15. The kiwi ranged between 62.45 and 61.98.

Some dealers predicted the kiwi would go as high as 63.30 in the next few days. Others are not so optimistic saying it could drop to 61.50.

The range, has been quiet with some unwinding of cross positions. The net shortage of kiwi dollars has forced it up at the moment, with good resistance at 62.50, a dealer said.

Cross rates put the kiwi at Aust7o.llc, 1.1582 Deutsche marks, 35.37 p, 79.144 yen, and 0.9843 Swiss francs. The Reserve Bank trade weighted index closed at 59.2 slightly up on Monday’s 59.0. The U.S. dollar fell sharply in Tokyo yesterday on speculative selling following cautious trade.

It was at 127.20 yen and 1.8610/15 Dm at midday against 127.95/128.05 and 1.8660/70 in New York on Monday. Dealers said the U.S. dollar would hold on the kiwi market around 1.8550 Dm pending the release of the United States December trade report on Friday (early Saturday N.Z. time). In Sydney the Australian dollar drifted to close slightly lower at U588.70/75c from its

88.80/87C close on Monday. The unit was dealt between 88.60 c and 88.90 c in sluggish trade after the U.S. unit closed lower in New York. The American dollar finished in Sydney at 1.8619/29 Dm and 127.22/25 yen from 1.8684/01 Dm and 128.05/15 yen.

On the Reserve Bank’s trade weighted index, the Australian currency eased to 66.2 points after opening steady on Monday’s 66.5 points close. It slipped against the yen to 112.76/91 yen from 113.94/10 at the close on Monday, 1.6512/30 Dm from 1.6589/07, SNZI.4IBB/19 from $NZ1.4281/12, 50.40/46p from 50.75/76p and 1.4033 Swiss francs from 1.4099/25. In New York on Monday (early yesterday N.Z. time) the U.S. dollar ended slightly lower after a quiet session that contrasted sharply with the volatility of the two previous trading days.

The U.S. unit finished at 127.95/05 yen, down from 128.65/75 at the previous close. It slipped to 1.8660/70 Dm from' 1.8710/25 Dm at Friday’s close. Sterling climbed to $U51.7540/50 from $U51.7460/70 even though the U.K. Government earlier reported a steep 1.5 per cent fall in U.K. retail sales The dollar ended at 1.5870/ 75 Swiss francs, down from 1.5900/15, but it edged higher, to sCanl.lBsB/63 from sCanl.lBss/60 on Friday.