PRESSURE ON STERLING

Press, Volume CII, Issue 30092, 28 March 1963, Page 19

PRESSURE ON STERLING

“Temporary But Severe” (N.Z. Press Association) AUCKLAND, March 27. For the second time since the breakdown of negotiations for British entry into the E.E.C. sterling came under temporary but severe pressure, states the National Bank of New Zealand in its latest review of the foreign exchange market. “Official statistics are likely to conceal the true extent of losses, but it is estimated in some quarters that sterling reserves may have fallen by almost 100 million dollars,” said the report. “The causes of this latest attack, which occurred in the last fortnight, are uncertain. Some authorities have suggested that unfavourable conjecture over Mr Maudling’s Budget, talk of devaluation, and uncertain political conditions may have been contributing factors. "Policy measures of the Bank of England have assisted sterling to regain its strength. “Over the last two weeks, the Canadian £N.Z. rate moved in favour of exporters and against importers, but with the U.S.-£ N.Z. rate the reverse applied, but neither of these changes has been significant. “In the last day or so the Continental currencies, without exception, have softened a little against sterling. Among the Eastern currencies, the Japanese yen softened and the Mai yan dollar hardened slightly against sterling.”