CURRENCY REPORT Dollar recovers; sterling weak

Press, Volume CXIV, Issue 33538, 20 May 1974, Page 16

CURRENCY REPORT Dollar recovers; sterling weak

The United States dollar staged a significant recoxerv against key European currencies on foreign exchanges late last week, after having suffered a series of heavy losses over the previous two weeks, says the Bank of New South Wales in its weeklyforeign exchange report.

The announcement or Tuesday evening of possible intervention by Unitec States, German and Swiss national banks to support the dollar its trade weightec average depreciation agains: 14 major currencies since the 11971 Washington agreement

i narrowed from 9.12 per cent, 31 to 8.44 per cent. 1 The markets of late have s i been in an extremely nervous i state. The improvement in lx rhe United Kingdom trade t figures, including a narrow- ’ ing of the non-oil deficit t which some sectors of the market had not anticipated, ’saw the pound gain against most other currencies. Its trade weighted average depreciation against 10 I major currencies narrowed to j 17.3 per cent, from its previous 18.5 per cent. Sterling reserves guarantees take j effect when the pound’s , trade weighted average depreciation widens beyond 18.35 per cent. The Deutsche mark was , also subject to wide fluctua- , tions, as rumours circulated . (but were later denied) that the D.M. was to float inde--4 pendently of the European o “snake.” 0 Latest Eurodollar offer ® rates are: one month llj per o cent; three months 11 9 and fifteen-sixteenths per cent; six months 11| per 0 cent; one year 10J per cent.