Sterling firms slightly against U.S. dollar

Press, Volume CXII, Issue 32994, 14 August 1972, Page 18

Sterling firms slightly against U.S. dollar

Sterling gained slightly against the United States dollar last week.

On Wednesday spot sterling closed at $U52.4543 for a gain of 17 points on the day, according to the weekly foreign exchange report supplied by the Bank of New South Wales.

Trading was moderate, but buying from Scandinavia was notable. This was caused mainly by the interest rate differential, which appeared to outweigh the lack of progress in the docks dispute, and other industrial troubles. On the Continent the U.S. dollar remained at its floor level in the Netherlands and Belgium, while the lira stayed at its lower intervention point against the dollar; it is rumoured that the lira may have received some support from the E.E.C. banks, and at least the Bank of Italy. On Thursday the price of gold on the London market suffered a loss of 65c an ounce, while spot sterling closed at $2.4525 —an effective devaluation of 5.9 per cent.

Overnight Eurodollar deposits averaged 4j per cent. Term Eurodollar rates are; One month 5 3-16 per cent; two months, 5| per cent; three months, 5? per cent; four months, 5 9-16 per cent; five months, 6J per cent; six months 6 3-16 per cent; one

year 6 5-16 per cent; two years, 6 13-16 per cent; three years 7} per cent; and five years, 7} per cent. The latest cross rates to the dollar for the main currencies are: Deutschmarks, 3.1835-42; commercial French francs. 3.7775-90; Japanese yen, 300.85-301.20; and Dutch guilders, 3.2020-30. Gold was $U566.15 at the first fixing, and $66.75 at the second on Thursday.