Sterling in demand

Press, Volume CXII, Issue 32862, 10 March 1972, Page 15

Sterling in demand

(N.Z. P.A.-Reuter —Copyright; LONDON, March 8. The-pound sterling moved up. sharply against the United States dollar on the London foreign exchange market today as the dollar slumped in European centres. Sterling closed 41 points up for the day at 2.62605 dollars after reaching a peak of 2.62675 at one time—its highest level since devaluation in November, 1967. Dealers said that, apart from the general weakness shown by the dollar, there was some feeling that Britain’s bank rate might be cut from its present 5 per cent rate. This also could have affected the money markets. . The value of the United States dollar rose slightly in West Germany after reaching its lowest level on Tuesday since the realignment of major western currencies agreed in Washington in December. The daily rate was set at 3.1690 marks to the dollar on the official Frankfurt

foreign exchange market compared with 3.1680 marks on Tuesday. West German bankers described dealings as quiet. At this level it remains close to its absolute floor level of 3.1500 marks and well below its middle parity of 3.2225 marks agreed at the Washington monetary conference. Dealers said uncertainty about the international monetary situation hindered the outflow of dollars from West Germany despite joint efforts by the Bonn Government and the Central Bank to fight off unwanted foreign funds.