$NZ quiet; awaits direction

Press, 23 February 1989, Page 35

$NZ quiet; awaits direction

PA Wellington The New Zealand dollar traded quietly in a narrow range yesterday, awaiting direction from movement in the major currencies. The New Zealand dollar finished at 61.33/43C, close to its opening level. Dealers said it had been dealt as low as 61.20 c. "It’s really a nothing market in the New Zealand dollar at the moment,” a dealer said. “All the currencies have been range trading in the last couple of weeks.” But when movement in the New Zealand dollar came, it would be sharp, the dealer predicted. With no major economic news expected in the short-term, the impetus

would probably come from a movement in the United States dollar. The Australian dollar held up against the United States unit, providing some support for the New Zealand dollar. The cross rate with Australia slipped to end at Aust7s.73c. Other crosses put the New Zealand dollar at 1.1288 Deutsche marks, 35.13 pence, 77.752 yen and 0.9612 Swiss francs. The trade weighted index was 59.8 at 3 p.m., against 60.1 24 hours earlier. In Sydney the Australian dollar closed higher boosted by higher Treasury note yields and offshore investor buying of Government bonds and shares.

It finished at U581.70/77C — well up from its close on Tuesday at 81.05/15c and off the day’s U580.95/Bl.ooc low. Most analysts expect the dollar to trade within a USBOc to 83c trading range in the short term after the 8 per cent depreciation last week on the worse than expected current account deficit and active Reserve Bank sales. But the Reserve is also believed to have been a buyer at the lower levels. The Australian dollar closed higher on the Reserve Bank’s trade weighted index at 60.6 from 60.5. It was higher against other major currencies at 1.4993/ 5014 Deutsche marks from 1.4997/10 at Tuesday’s close,

103.30/47 yen from 103.26/37, 46.70/77 pence from 46.42/ 47c and 1.2779/2806 Swiss francs from 1.2762/78 and $NZ1.3279/3312 from 5NZ1.3137/74. In New York on Tuesday (early yesterday New Zealand time) the United States dollar finished higher compared to its closing levels on Friday, but it closed below its session highs. The United States currency market was closed on Monday in observance of the President’s Day holiday. -Thedollar ended at 1.8413/ 18 Deutsche marks and 127.08/13 yen, up from Friday’s close of 1.8375/80 and 125.80/85.