French franc falls

Press, 3 June 1982, Page 20

French franc falls

PA Paris The French franc fell against the U.S. dollar yesterday after - reported remarks by President Mitterrand fuelled speculation that the currency might be devalued or withdrawn from the European Monetary System (EMS). . After markets reopened after a long week-end, the franc was fixed in Paris at 6.1775 to the U.S. dollar, down on Friday’s closing 6.1200 but still above its record low last March of 6.30. In contrast, the West German -mark slipped against the franc to a fix of 2.6029 francs, compared with a Friday close of .2.6110. Dealers saw pressure on the franc, ailing'for much of the year since the socialist administration took ’ • office, stemmed from a belief that France’s weakening economic .< performance . would

make inevitable a devaluation within the EMS, which sets fluctuation limits for. its eight member currencies;

Market rumours were strengthened during the week-end when the Parisbased “International Herald Tribune” quoted President Mitterrand as saying in an interview that he did not rule out the possibility of devaluation or withdrawing from the EMS. The President’s office issued a denial that he had discussed the subjects in the interview with U.S. journalists last week, but the newspaper said its report was accurate.