CANADIAN DOLLAR

Press, Volume CII, Issue 30056, 14 February 1963, Page 18

CANADIAN DOLLAR

Speculation Last Week (N.Z. Press Association) AUCKLAND, Feb. 13. The defeat of the Diefen* baker Government test week caused a temporary but severe pressure on the Canadian dollar, Mates the Naitdonai Bank of New Zealand in ite review of the foreign exchange market. Some quartern consider that continued argument over Canadian defence policy and further refusal to accept United States nuclear weapons could cause some withdrawal of American investment funds and thus impose further strain on the Canadian currency. However, Canadian reserves, which include a 300 million dollar loan from the

International Monetary Fund, have increased by 622 million dollars since early 1962 Following the collapse of negotiations for British entry in the E.E.C., temporary speculation against sterling caused a toes of gold reserves estimated by some sources to be in the vicinity of £2l million. Despite this setback in the period under review, sterling has maintained its strength. Although there have been quite significant daily fluctuations in the spot rote flor both United States and Canadian dollars for the period under review, the overaM movement has been amaM. In the forward market the premium for United States dollar has cheapened slightly from 3-8 cent to J cent per month. There has been little change in the rates for the principal Continental currencies, although there has been a slight softening at the Deutechemark and French francs to the £N.Z.