21-month low against SUS
PA Wellington The New Zealand dollar plumbed a 21-month. low against the United States dollar yesterday on the foreign exchange market, closing 17 points down on its opening quote. The kiwi dollar recovered some of its early losses but dealers were mixed on direction and said that would depend on the volatile greenback. Despite chartists saying a rally was due, one dealer said that with the export season ending there was less natural interest to buy the kiwi dollar. He predicted a rate of about U555.5C by late August. The kiwi dollar moved in a 60-point range yesterday and dropped to as low as U557.95C before recovering slightly to close at 58.16/26c. On Friday it closed at 59.43/ 53. The kiwi dollar hit its 21month low yesterday morning, as international investors flocked to take advantage of higher interest rates in the United States. The higher United States interest rates, which sparked the fall were expected to raise concerns about the increasing cost of servicing
loans held in United States dollars. The international flight from Australasian currencies, however, hit the Australian dollar hardest. Exporters trading in Australian dollars — the case for many manufacturing exporters — saw no relief as the kiwi dollar gained Austlc over the Australian dollar, to reach Aust79c. However, by the close of trading the kiwi dollar had lost the cent on the crossrates and was worth'Aust7B.sBc Against other main currencies the kiwi dollar was unchanged at 1.16 marks and firmer at 37.14 p, 83.09 yen and 1.0236 Swiss francs. The Reserve Bank tradeweighted index closed at 61.4, slightly down on its opening fix of 61.5. A week ago it closed at 62.1 and a month ago at 61.7. In Sydney the Australian dollar closed lower but off the day’s floor amid short covering and Reserve Bank buying near US73c. The currency fell sharply in United States trading on Friday.
The Australian dollar closed yesterday U573.85/95C from Friday’s local close at 75.78/83.
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Press, 30 May 1989, Page 18
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32721-month low against SUS Press, 30 May 1989, Page 18
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