CURRENCY SPECULATION

Greymouth Evening Star, 29 August 1934, Page 7

CURRENCY SPECULATION

RALLY’ TO STERLING. [BY CABLE —PRESS ASSN. COPYRIGHT.] (Recd. August 29, 8 a.m.) LONDON, August 28. The “Daily Telegraph’s”, city editor says: Continental speculators who were selling sterling suddenly changed their tactics and began to sell Continental gold currencies with the result that the fall of the pound was checked. The change in front was due to rumours that Holland might be forced off gold, and thus break up the gold bloc. Holland, however, denies weakening the bloc. The British Exchange Equalisation Fund has been freely used to counter the sales of sterling, which was traceable to speculators believing Mr Roosevelt was heading for inflation, and the pound was likely to be depreciated step by step with the dollar. The present position is that the dollar is unlikely to be immediately devalued, and the pound is suffering nothing more than the usual autumn weakness when the bulk of British imports are paid for. To-day’s quotations were: Gold 139/lftd, dollar 505 9-16, franc 753. GERMAN RESTRICTIONS. BERLIN, August 28. The imports currency allotment for September remains at five per cent, of the average requirements in 1930-31 fox- all contracts made before July 1. Foreign currency for other raw material orders will be released only as they are received daily.