RISE IN STERLING

Evening Post, Volume CIV, Issue 144, 15 December 1922, Page 7

RISE IN STERLING

EXCHANGE WITHIN SIGHT OF PAE.

(CNITBD PRESS ASSOCIATION—COPIRIOSI.)

(AUITRAUAN - NEW ZEALAND CABLE ASSOCIATION.) LONDON, 13th December. The, exchange on New York to-day reached .4.69 dollars to the £1, and on Montreal, 4.71 cents.

The rise in the value of the sterling exchange is not accountable to movements on this ' side. 1 Many foreign loans were recently floated in New York, and much money raised thereby was remitted to Europe, which automatically caused a demand for sterling. This fact inspires the belief in some important quarters that thp appreciation of the sterling may be' checked; -when remittances to America pay interest on our debt., '

Nevertheless the present outstanding factors include, first, a balance in favour of British trade; second, lower prices of commodities in Britain compared with America; and, thirdly, a maintained standard of British credit, which has been further improved by payments of interest on our debt to the United States.

Par in eaoh case is 4.86 dollars to the £1. On Saturday the rate wae approximately 4.57 dollars* Yesterday it was reported that a sensational rise had occurred—to 4.62 dollars. The latest rise is even more "sensational." The £1 sterling is now worth 19s 3^d' in the States.