$NZ remains below US59c

Press, 6 September 1989, Page 38

$NZ remains below US59c

PA Wellington The New Zealand dollar closed lower yesterday at U558.80/90 from the previous close of U 558.95/ 05, after trading up overnight to open at U 559.10/ 20. The kiwi slipped below US59c in early trading and in spite of bouncing back close to that level failed to break through it. Afternoon trading was generally quiet, a dealer said. The kiwi might run down a bit further overnight but was not expected to drop below 58.60, he said. After reaching its high of 59.15 in the morning the kiwi fell to be quoted at U558.84/94 around mid-afternoon before slipping to its closing level. A large early sale had driven the kiwi below US59c but dealers said then they expected it to bounce back. The major local sale was behind the kiwi’s surprise drop, a dealer - said. Selling in the United States dollar and continuing interest from overseas buyers, however, were expected to push it back up, she said. The United States dollar, was steady in earlier trade and dealers said they expected it to firm as United States traders returned from the Labour Day holiday there.

The market continued cautiously until it had confirmation that the United States market would add momentum to the greenback’s recent rise. After a long weekend to think about things and the recent encouraging employment data, New York traders should have something to go on, a dealer said. The US unit was around 1.9786/96 Deutsche marks and 146.13/20 yen from its opening 1.9785/95Dm and 145.95/05 yen but down on Monday’s closing 1.9822/32Dm and 146.15/ 25 yen. After being down on the opening cross rates against other major currencies, the kiwi was steady to firm during the day to close at Aust77.3c, 1.16DM, 37.8 p, 86 yen and 1.0055 Swiss francs. The kiwi had been slightly overvalued on the Reserve Bank trade weighted index, a dealer said. It closed yesterday at 61.9, marginally up on its opening fix of 61.8 after Monday’s close of 62.2. A week ago it closed at 61.8 and a month ago at 61.2. The Australian dollar closed in New Zealand at U576.04/U from its opening 76.18/25 after trading in a range between 76.27 and 75.95. It closed at 75.90/97 in New Zealand on Monday.