CURRENCY REPORT U.S. dollar's firm trend continues

Press, Volume CXV, Issue 34026, 15 December 1975, Page 20

CURRENCY REPORT U.S. dollar's firm trend continues

News that the U.S. Senate had voted to limit debate on the bill authorising Federal loans to New York City helped the dollar strengthen on European exchange markets early last week, says the Bank of New South Wales in its weekly foreign exchange report.

The unit, continued to rise and was given a major boost by the Swiss National Bank, which had made intervention purchases of the dollar in an attempt to curb the strong rise in the Swiss currency, already appreciated 46 per cent against the United States dollar since Smithsonian levels of December, 1971. However, by the end of

the week the dollar had eased against major European currencies in the face of year-end currency position taking. Sterling remained relatively steady, but the London investment dollar premium hit a record 121.75 per cent (an effective premium of about 72 per cent on the current SUS/sterling rate) reflecting the reluctance of British investors to sell their overseas portfolio holdings. The United States wholesale price index remained unchanged in November, compared vvith a rise of 1.8 per cent in October. This was attributed to a reduction in the prices of farm [products. Unemployment in Canada rose 0.1 per cent to a seasonally adjusted 7.3 per cent in October.