Currency report

Press, 6 October 1980, Page 22

Currency report

Foreign currency markets I stayed quiet throughout last ; week because of the absence | of any fresh developments I in Iran or Iraq, but continued nervousness ahead of the deliberations at the current IMF conference, according to the weekly foreign exchange report from the Bank of New South Wales. The United States dollar remains underpinned by the higher United States interest rates. Eurodollar deposit rates were mostly 1/2 . or 5/8 point above the previous week’s close, reflecting the unexpected 52500 M rise in the U.S. money supply

I figure and the Federal Re- | serves credit tightening (action by raising its discount rate from 10 per cent ito 11 per cent. I Sterling declined slightly against the dollar, but the yen rose. Market operators linked the move to increasing sentiment that the conflict between Iran and Iraq will not cause significant major oil supply or price disruption. Pressures on the Italian lira eased somewhat as President Sandro Pertini began consultations to solve the nation’s 40th political crisis since 1945.