$NZ bounces at US57.40c
PA Wellington The New Zealand dollar fell 80 points before recovering slightly to close at U557.63/73C yesterday. The kiwi opened at 58.05/15c and traded in a range from 58.20 c down to 57.40 c. Dealers said trading in the kiwi was nervous as the moves in the American dollar once more dominated currency markets.
They said the kiwi attracted good buying support from Tokyo when it reached down to U557.5c. But otherwise there was not much of note and very little natural interest in the kiwi. The export season was ending and traders were starting to reassess their positions for the next 12 months, he said. They were staying away from the kiwi and letting it find its own level.
On the cross-rates, the New Zealand dollar was Aust76.4sc, 1.1396 marks, 36.66 p, 82.338 yen and 0.9878 Swiss francs. The tradeweighted index was 60.4 at 3 p.m., the same as at 3 p.m. on Tuesday. In Sydney, the Australian dollar closed higher, boosted by a weaker United States
currency and a sharp overnight gain in gold bullion, dealers said. The local unit ended at U575.32/39C, well down from its start at 75.70/81C, but firmer than Tuesday’s finish in Sydney at 74.90/97c. In New York on Tuesday (early yesterday, N.Z. time), the U.S. dollar finished a volatile, nervous session lower because of the growing view that the Federal Reserve System has begun to ease its grip on credit. The dollar rose initially to highs of 1.9892 marks and 143.35 yen on the political turmoil in China from Monday’s 1.9815/25 and 142.80/85 close. But it closed at 1.9710/ 20 marks, and 142.58/68 yen.
Rumours of discreet dollar sales by the Fed. also weighed on the dollar, some dealers said. The Fed. refrained from money market operations despite expectations of a draining of reserves, convincing market participants that it had begun a widely expected easing in credit, currency dealers and economists said.
Morgan Guaranty said the midday dollar was 5.4 per cent below 1980-82 market rates compared to 6 per cent down on Monday.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19890608.2.132.9
Bibliographic details
Press, 8 June 1989, Page 30
Word Count
345$NZ bounces at US57.40c Press, 8 June 1989, Page 30
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in