Waiting for Keating

Press, 13 April 1989, Page 24

Waiting for Keating

PA Wellington The New Zealand dollar marked time on the Wellington foreign-exchange market yesterday as the currency market awaited last evening’s Budget statement from the Australian Treasurer, Paul Keating. The kiwi firmed gently in quiet trading, opening at U560.67/79C and settling at 60.90/00 by early evening. The local market continued to trade after Mr Keating’s statement, watching for movement in the Australian dollar. One trader predicted the Kiwi would stay in a tight U560.60/61.15C

range for me next week before the release of March quarter inflation for New Zealand gave it new direction. On the cross-rates the kiwi was steady against the Aussie at Aust 75.40 c. The currency was also valued at 1.1484 marks, 36.04 p, and 80.850 yen. The trade-weighted index at 3 p.m. was 60.5, against 60.4 24 hours earlier. The Australian dollar ended slightly higher yesterday in Sydney in a subdued market ahead of the Federal Government’s early evening economic statement. Dealers said the main focus was on booksquaring, although some dealers believed

the market was slightly short going into the address by the Federal Treasurer, Paul Keating. The Aussie ended at U580.82/87C from Tuesday’s finish of 80.75/80. In New York, the United States dollar ended higher on Tuesday (local time) in spite of the Federal Reserve selling dollars to stem the currency’s advance, dealers said. Trading remained quiet, however, before Friday’s trade and inflation data. At the close, the dollar was at 1.8857/62 marks compared with 1.8829/34 on Monday. The Fed’s sell-off was welltimed because the dollar was approaching an important technical level at 1.8875 marks, dealers said. The dollar ended at 132.68/73 yen compared with 132.82/87 on Monday.