CURRENCY REPORT U.S. dollar easier in world markets

Press, Volume CXIV, Issue 33450, 4 February 1974, Page 23

CURRENCY REPORT U.S. dollar easier in world markets

At the beginning 1 dollar’s recent improve European currencies w dollar time deposit ra rates of some Amerii according to the weel report from the Bank i .Meanwhile in Tokyo the i Central Bank is believed to : have sold around s7om to I support the value of the yen | at a rate of .300 to the United | States dollar. Following an E.E.C. recommendation that the offi- > cial price of gold used for j settlement between the mem- L ber countries should be .

of last week the U.S. ement against leading vas reversed, as Eurottes eased, and prime i ican banks Mere cut. ‘kly foreign exchange of New South Wales. I raised from its present: $42.22. the London market j pushed up the price by $7.50 ■ jto $141.50 an ounce; its closiing price on Thursday was $U5132.50, The United States dollar 1 continued to weaken against |all European currencies after: 1 President Nixon’s abolition 1 of the interest equalisation • tax and removal of other' 1 icurbs on capital movements 1 ' I from the U.S.A., in anticipal tion of a flow of funds abroad. : A rise in interest rates on ( j short term Eurosterling de- i ; posits and on other Euro-! I currencies also contributed ito the sagging of the dollar. I At one stage the interest rate ■ ion overnight Eurosterling I soared as high at 450 per i( cent per annum. The cost of forward sterl-! ing has been slowly increas- ; ing during the week although latest quotations have eased somewhat with cost of for- j ward cover for one month:; currently at 16.91 per cent!•per annum. Latest Euro-dollar offer (rates were: 1 month 8-15/161 per cent; .3 months 8-15/16 1 per cent; 6 months 813/16 per cent; 12 months 8| per cent. Discount rates for bills drawn under "Form 3” letters of credit were: 30 days 161 per ecnt; 60 days 13J per ; I cent; 90 days 13| per cent; Hl2O days 14 per cent; 150 ! days 15s per cent; 180 days I 15| per cent. i