U.S. dollar fell to new lows in Europe

Press, 22 February 1978, Page 23

U.S. dollar fell to new lows in Europe

NZPA Reuter London The United States dollar 1 plunged to record lows on Monday against the Swiss franc, and West German mark, and continued its fall throughout today after the breakdown at the week-end of talks aimed at ending the lengthy United States coalminers strike. Traders on European foreign exchange markets were anxious and the Swiss

Trane — traditionally at “haven” to which they run; [in uncertain times — gained] imore than six centimes ■ [against the dollar during the day’s trading. [ The strength of the Swiss I currency meant that the [pound sterling, and even the I otherwise strong West Ger[man mark fell to record lows [against it. I As operators also turned I to gold, the price rose to

5U5182.45 an ounce. 52.85 c higher than the price on March 6, 1975.

The continuation of the 77day strike by 160.000 United States coal-miners has added to concern already felt about the United States economy, dealers said.

The big United States! trade deficit has been an! underlying factor in the] dollar’s weakness, with ] dealers watching anxiously for signs to satisfy them that ’ the United States authorities! are going to support the currency’ substantially. As the Swiss franc enjoyed its period of strength, sterling hit a record low of] 3.5964 Swiss francs, and the] British chancellor of the Exchequer (Mr Healey), speaking during a trip to Brussels, said that the depreciation of the dollar had gone further than was justified by purely economic facts. However, the holiday in American centres — marking George Washington’s birthday — had thinned-out trading in Europe, encouraging rapid and often erratic movements in rates.