Pound sterling at record low

Press, Volume CXIV, Issue 33435, 17 January 1974, Page 18

Pound sterling at record low

(New Zealand Press Association) WELLINGTON, January 16. The pound sterling sank to a new low against the New Zealand dollar today. But it was matched by corresponding sharp rises in the values of the United States and Australian dollar — and so is a mixed blessing to importers and exporters, and people planningoverseas holidays.

The pound has been mov-i ling back sharply over recent! 'weeks and hit a record lowl jon international money mar-' kets yesterday as expectation ( 'grew of an early general! (election, and a prediction! from the Bank of England I that Britain faced a balance (of payments problem for! years ahead. At the same time the. United States dollar set a; | record high against the BriI tish pound as international (confidence continued that it ’ would weather the energy ! crisis well. ' Today’s exchange rates, set by the Reserve Bank, fully , reflect these movements; sterling was quoted at a , buying rate of 1.5890—a drop jof nearly 1 per cent from I yesterday.

At the same time, the) United States dollar jumped) sharply in value to a selling! rate of 1.3662 from yesterday’s 1.3807; it is now nearing the old “tied” rate of 1.3337, and is more than two per cent below its cheapest rate for the year in terms of the New Zealand dollar. The Australian dollar—which is fixed to the United States currency—has shared its fortunes throughout the year. Joday a New Zealand trading bank was charging its clients about 108 c (New Zealand currency) for every Australian dollar. Less than three months ago an Australian dollar could be bought for about 99c of New I Zealand money.