Currency report

Press, Volume CXIII, Issue 33418, 27 December 1973, Page 14

Currency report

■ The United Statei dollar made considerable gains against other European currencies during the last week; sterling continues to be affected by many uncertainties but on balance, the latest package of industrial restrictions to conserve power 'resources should help to t strengthen the currency, says the Bank of New South Wales in its weekly foreign exchange report. “Forward sterling weakened sharply upon fears of the outcome of the ‘mini’ budget, and worsening fuel I supplies which will bite into 'Production.

“As expected spot sterling fell sharply after the Chancellor of the Exchequer had unveiled his mini budget, reflecting dealers’ doubts whether the new measures would stem imports and conserve foreign exchange holdings; average depreciation of the pound since December, 1971, is 18.8 per cent,” the report says.

Gold prices jumped during the week to $109.50 an ounce; however, closing price at last report was $108.50. Latest Eurodollar offer rates are: one month, 10 j 13/16 per cent; three months, (10 11/16 per cent; six months, 10 7/16 per cent; 12 months, 9} per cent. Discount rates for bills drawn under “form 3” letter of credit are: 30 days, 15J per cent; 60 days, 14 per cent; 90 days, 13 15/16 per cent: 120 days, 14$ per cent; 150 days 15 1/16 per cent; 180 idays, 15 1/16 per cent (