Currency report
Mounting pressure in all major centres drove the French franc down against the United States dollar despite major supportive action from the French Central Bank, according to the weekly foreign exchange report from the Bank of New South Wales. The franc’s weakness was attributed to apprehension over inflation which is believed to be uncontrolled, and the effect of the present drought on the economy, causing speculative sales of the unit. Rising short tern interest rates helped stabilise the franc, and it now appears the French authorities favour a
gradual weakening of the currency.
The persistent speculative pressure on the franc created tension around weaker European currencies, once again stretching the European joint float. Sterling finned slightly on expectations of British Government spending cuts.
Gold touched its lowest levels since January, .1974. Dealers said buying interest dried up in face of continued selling sparked by operators’ disappointment with the result of the recent I.M.F. auction and by the psychological effect of the I price going below SUSI2O.OO.
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Press, 26 July 1976, Page 14
Word Count
168Currency report Press, 26 July 1976, Page 14
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