Inflation dragging sterling down

Press, Volume CXV, Issue 33869, 14 June 1975, Page 19

Inflation dragging sterling down

AMSTERDAM. Commercial bankers from Europe. .Japan, the I nited States, and Canada regard continued depreciation of sterling as almost inevitable because of accelerating British inflation.

The bankers gave their informal assessment as the pound reached a record level of depreciation against other major world currencies on foreign-exchange markets on Thursday. and then staged a recovery, which dealers in several centres attributed To Bank of England .intervention on a highly volatile

market. In London during the morning, sterling reached a

record depreciation compared with three years ago yf 26.5 per cent One of several factors contributing to the run on sterling has been the fear that the retail price index will show worsening inflationary trends. In Zurich, alter a da\ ot nervous and active trarfino

dealers said that sterling recovered from its all-time record low, and in late dealings banks were quoting the B r i t i s h currency at SLJS2.2BOO-10 and at 5.66906775 Swiss francs, compared with respective session lows of about 2.2685-93 and 5.62. In Frankfurt, the steep fall of sterling was also apparI ently checked, and dealers said the pound closed at 5.308 marks, almost three pfennigs higher than its alltime low opening rate of Bu.»ine>s personal Mr K. J. Nysse, of SkelJerup Industries. Ltd, has been .appointed to the list of United Nations (U.N.C.T.A.D.G. A. T.T.-Geneva) advisers in marketing and export trade assistance to developing nations, Mr Nysse remains with Skellerup, but will he granted leave of absence for any assignment. Mr Nysse. general manager and a director of the Batavian Rubber , Company, Ltd, Featherston — a wholly-owned subsidiary of Skellerups' which exports to more than 40 countries — was in Geneva last year for discussions with the International Trade Centre of the United Nations.