Currency markets in subdued mood

Press, Volume CXV, Issue 33776, 24 February 1975, Page 18

Currency markets in subdued mood

Trading was generally subdued on foreign-exchange markets last week, and after firming initially’ the dollar closed rather mixed against major European currencies, the Bank of New South Wales said in its weekly foreign exchange report.

Some of its strength ■gainst the Deutsche mark •nd Swiss franc originated from rumours (later discounted) that the Federal Reserve Board, the Bundesbank, and the Swiss Nat-; ional Bank were to meet in' Switzerland with the intention of discussing in-

i creased support for the dol- . lar. I The Bundesbank did sup-| port the dollar in Frankfurt but the extent of the inter-! vention is unknown. It is! possible that the Federal Reserve may also have pro- 1 vided some light support. The Bank of France was! reported to have purchased; dollars — the most likelyi purpose being to maintain a[ stable mark-franc rate. Germany is r rance's most important trading partner and) it is important for them to have an acceptable exchange; paritv. Also, in the light of the French Government’s: aim eventually to bring the; i franc back into the iointj i float, it is significant that) ) France appears to be main-; taining unofficial links with! the float’s most important ) currency. Sterling gained marginally)l against the dollar, much of its increase attributed to! technical factors related to) monthly foreign exchange l reporting requirements. Thel' pound also improved aginst! [European currencies; the ; i trade-weighted depreciation l [narrowed to 21.5 per cent from 21.7 per cent. I; The latest offer rates fror;) some Eurocurrencies were; j