Exporters help kiwi

Press, 8 March 1989, Page 38

Exporters help kiwi

PA Wellington Exporter buying supported a shaky New Zealand dollar yesterday, with good two-way business keeping the kiwi dollar trapped in a narrow trading range. The kiwi dollar lost 47 points against the United States dollar, closing near its day’s low at U561.20/30C after closing on Monday at U561.67/77c. It opened at U561.37/47c and traded between U561.13C and U561.45C. One dealer said the kiwi dollar was “firmly in a shortterm downtrend” although it would take quite a nudge to take it below US6IC. Another dealer said he expected the kiwi dollar to trade between US6I.IOC and U561.60C in the next few days. The Australian dollar traded in New Zealand between USBO.B6C and U581.35C, closing at U581.13/18C. Dealers said the Australian dollar had technically reached a peak of correction and should fall against the United States, putting more pressure on the kiwi dollar. At close in New Zealand

the kiwi dollar was worth Aust7s.47c, 1.13 marks, 35.53 p, 78.96 yen, and 0.9655 Swiss francs. The Reserve Bank trade weighted index was fixed at 60.2 at 3 p.m., unchanged from its previous 3 p.m. fix and 0.1 pointe down from its opening 9 a.m. fix. In Sydney, the Australian dollar closed lower as the market consolidated after falls in the London market overnight after West German investor sales. At U580.95/00c the Australian currency's finish was well below Monday's U581.55/60c. After opening at U581.23/30C, the dollar was marked down to U 580.86 before moving back up to U581.35c on short-covering. After last week’s volatile trading, which led the currency down to a low of U578.60c, it was likely to consolidate over the next week, a dealer said. The Australian dollar was firmer against the kiwi dollar at 5NZ1.3169/99 from $NZ1.3143/76. In New York, the dollar ended more than one yen and

nearly one pfennig higher after a Japanese Finance Ministry official said the United States currency was close to its lowest level. The dollar ended at 129.00/ 10 yen and 1.8520/30 marks, up from Friday’s close at 127.70/80 yen and 1.8425/30 marks. Mr Makoto Utsumi, director of the Japanese Finance Ministry’s international finance bureau, said the United States dollar was near the bottom of its trading range as United States products were now priced very competitively on world markets. The dollar got its initial boost from the statement. But additional support came from continuing speculation about a widening of the Japanese Recruit stock scandal, which some expect to claim more political casualties and possibly lead to an early national election. A former chairman of Nippon Telephone and Telegraph was arrested on charges of taking bribes in connection with the scandal.