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Currency report

interest rate considerations continued to dominate foreign exchange markets last week, according to the weekly foreign exchange report from the Bank of New South Wales.

The dollar slumped against most major currencies as eurodollar rates softened further. News that Chase Manhattan bank had cut prime rate to 13 per cent reinforced the bearish sentiment.

Sterling steadied after its sharp declines; the run on sterling was prompted by the Prime Minister’s (Mrs Thatcher) statement to Parliament commenting on the

United Kingdom’s EEC budget contribution deal and its implications for interest rates. The statement was taken by many market participants as a hint that interest rates will fall sooner than expected. The Canadian dollar weakned on the unexpected news of S7M trade deficit. Market operators had been expecting a S3OOM surplus for Canada in April after a downward revised $649M surplus in March.

The French franc remained at the top of the EMS joint float, 1.86 per cent stronger than the bottom-placed Italian lira...

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19800609.2.144.10

Bibliographic details

Press, 9 June 1980, Page 26

Word Count
164

Currency report Press, 9 June 1980, Page 26

Currency report Press, 9 June 1980, Page 26