EXCHANGE RATES

Press, Volume CI, Issue 29890, 2 August 1962, Page 17

EXCHANGE RATES

Improvement In Sterling (N.Z. Press Association) AUCKLAND, Aug. 1. The recent sweeping changes in the British Cabinet had no marked effect upon s.erling. states the National Bank of New Zealand in its review of the foreign exchange market Sterling had previously shown increased strength after the publication of good trade figures for June. However. private purchases of gold on the London market were heavy until the United S.ates announced that i: would not devalue the dollar After this announcement the demand for gold decreased and the United States dollar strengthened at the expense ot the pound sterling, the Swiss and French francs and the Italian lire. German Bank Rate In Germany the Government has introduced measures to strengthen the mark. The central bank raised discount rate for Treasury bills by 1/8 per cent, arid increased the cost of securing foreign exchange cover. The fluctuation in the last fortnight In the U.S. dollar £N Z. rate has been approximately 2s per £lOO and. in the Canadian dollar £N.Z. rate approximately 2s 9d per £ 100. Both "fluctuations favour exporters and are against importers. The forward selling premium on the U.S. dollar is Vs cent and there is a forward buying discount of 14 I cent on the Canadian dollar Although some European and Scandinavian currencies have hardened slightly against sterling, there has been no uniform pattern apparent in the movement of Continental currencies. The rates for Austria. Belgium and Sweden have hardened, and ihose for Holland. Denmark and West Germany have softened against sterling. The Japanese yen has hardened against sterling and the only other rate to change among the Eastern currencies is that*for the Singapore dollar. which has softened against sterling.

Elder Smith.— Recommended dividend is 6 per ceht, making 10 per cent, for the year.— (P.A.).