Kiwi edges US59c

Press, 1 June 1989, Page 45

Kiwi edges US59c

PA Wellington The New Zealand dollar touched US59c on the foreign exchange market yesterday but finished lower in quiet trading. The New Zealand dollar closed at U558.65/75C against its opening of 58.70/80C. Dealers said it ran into selling pressure just under US59c and it remained on a downtrend dominated by volatility in the Australian dollar and continued strength in the United States currency. Trading in the New Zealand dollar was quiet as traders relaxed at the end of a volatile month, one dealer said. News that Standard and Poor’s rating agency had confirmed Australia’s AA-plus rating contributed to a bumpy day for that currency, a dealer said. Dealers said the Australian dollar opened at U574.75/85c and rose to 75.45/55 when the rating announcement was made. Selling out of Japan then carried the unit back to 74.68/75 by the close. The New Zealand dollar gained over the day against a basket of currencies, with the trade-weighted index 61.7 at 3 p.m. against a 61.4 fix 24 hours earlier. That reflected a higher cross rate with Australia at Aust7B.s6c and other crosses of 1.1689 Deutsche marks, 37.37 p, 83.735 yen and 1.0162 Swiss francs.

In Sydney, the Australian dollar rallied late yesterday afternoon as its United States counterpart was sold off in early European trading.

The Aussie closed at U575.18/25C but shortly after it rose to around 75.30 as the United States dollar came off. It opened in Sydney at 75.15/ 20, up from its local finish on Tuesday at 74.55/65. In New York on Tuesday (local time), the United States dollar ended higher but well below its daily highs,

The dollar finished at 1.9895/05 Deutsche marks and 142.50/57 yen, up from 1.9828/35 and 141.05/15 at Friday’s close.