Kiwi tests US60c level

Press, 26 September 1989, Page 21

Kiwi tests US60c level

PA Wellington The New Zealand dollar closed on its highs to test the US6Oc mark late yesterday.

It closed higher at U559.92/60.02C after jumping markedly as Asian markets sold down the United States unit.

The kiwi had opened at 59.20/30, down slightly from its close last Friday of 59.25/35 and traded to 59.50/60 at 11 a.m. The kiwi traded in a range of more than 60 points yesterday with a low .of 59.30 and a high of 59.95.

“For the first time in about a month we’ve got a reasonable trading range and some room to move,” a dealer said. When Asian markets opened five hours after New Zealand’s, overseas dealers began selling United . States dollars heavily and the kiwi was marked up on the weakness, in addition to support from local exporters.

The United States dollar opened sharply down in Tokyo after the Group of Seven meeting in Washington said in a' communique that the greenback was trading too high. Marginally stronger interest rates contributed to the support for the kiwi but it was basically moved by the weaker United States dollar and stronger Australian dollar. In New Zealand, the Aussie also traded up against the United States dollar in a broad range, closing at U579.16/23C after trading between a low of 78.30 and a high of 79.40.

On the crossrates, the kiwi down at Aust7s.72c, 1.1418 Deutsche marks, 37.21 p, '85.667 yen, and 0.9900 Swiss francs. The Reserve Bank trade-weighted index stood at 61.7 at the 3 p.m. close after opening at 61.7, the same fix as it closed last Friday. A week ago it was 61.7 and a month ago 61.6.