U.S. dollar weakest for several months

Press, Volume CXIV, Issue 33664, 14 October 1974, Page 22

U.S. dollar weakest for several months

The dollar suffered its sharpest losses in currency centres for several months despite occasional central banking aid, according to the weekly foreign exchange report from the Bank of New South Wales.

Continued decline in Eurodollar rates acted as the main depressant, although a disappointing response to President Ford’s economic package did little to relieve the dollar from pressure. It has also been reported, that currency holders who had previously moved into dollars for security! are now diversifying] as the market appears over the past month or so to have returned to some semblance] of normality.

* The Deutsche mark strengthened against the United States dollar after hectic trading on the West German foreign exchange, market. , Dealers described this as a negative reaction to President Ford’s anti-inflation package. The West German central bank made a symbolic gesture and purchased $5,000,000; however, this was ' not sufficient to stem the 1 tide. i Sterling has remained quite | steady during the week: the

elections appeared to have little influence. Gold trading for the week was moderate with the market closing at (latest) $157.50. Eurodollar rates were significantly easier in all periods; markets were moderately active.