CURRENCY REPORT

Press, 23 May 1977, Page 14

CURRENCY REPORT

The following is the diary; kept for last week by the! London foreign exchange de-[ partment of the Bank of New South Wales: — May 12: The U.S. dollar began to move into sharp retreat against key currencies in final minutes of trading. Its losses were associated with the call by the managing director of IMF. (Dr Witteveen) for Germany and Japan to allow their currencies to appreciate. Sterling was unaffected by Witteveen’s remarks. His comments re-aroused recent market concern that major industrial nations may agree on a form of currency rela lignment that would con-

tribute to continued world economic rcovery without a resurgence of inflation. May 13: The U.S. dollar closed near its overnight levels after a rally sparked by the move by major U.S. banks to a general 6.5 per cent prime rate. May 16: The U.S. dollar closed slightly firmer against most European currencies in thin featureless trading. The advance was largely because of the general rise in U.S. bank prime rates. May 17; The U.S. dollar closed slightly weaker in thin trading ahead of Forex Club conference in Montreaux. Unwinding of positions after the U.S. dollar’s recent advance and news of slower U.S. industrial production growth last month helped to depress the currency. May 18: The U.S. dollar showed small gains in very limited trading, but the trend was largely technical as operators squared their books ahead of Ascension Day holiday.