Sterling edges up against $US

Press, 27 April 1983, Page 33

Sterling edges up against $US

NZPA New York The United States dollar turned mixed against other major currencies in late trading in New York on Monday after losing ground in European centres. Gold prices also were mixed. The dollar’s decline in Europe in part reflected expectations that American interest rates would fall after a SUS3.I billion contraction in the country’s money supply that was reported last Friday, traders said. Credit analysts said the latest decline in the money supply appeared to preclude any move by the Federal Reserve Board to restrict credit, which would drive rates up. But in American trading on Monday rates edged higher, and the dollar strengthened against the Swiss franc and Canadian dollar. The rate on six-

month Treasury bills, for example, rose to 8.25 per cent from 8.17 per cent late on Friday. Sterling rose on the foreign-exchange markets on Monday to close at its highest level againt the dollar for three months.

Helped by reports that the Soviet Union and Egypt were raising their prices for crude oil, sterling (an oilbased currency) rose 2c from Friday’s closing to end at $1.5660, dealers said.

Comparatively high British interest rates and last week’s announcement of lower inflation in retail prices also helped the advance, they added.

British shares were buoyed by the strength of the currency and peaked at 693.3 on the “Financial Times” industrial ordinary index.

The pound sterling rose in United States trading, also to $1.5660, from $1.5495 on Monday. Other dollar rates in United States trading at 4.05 p.m. on Monday compared with late on Friday were: 2.4448 West German marks, down from 2.4460; 7.3275 French francs, down from 7.3345; 2.0550 Swiss francs, up from 2.0530; 236.39 Japanese yen, down from 236.50; and 1.2261 Canadian dollars, up from 1.2256. In New York, gold for April delivery edged down $2.30, closing at $436.90 an ounce on the commodity exchange.