SALES OF STERLING

Manawatu Standard, Volume LII, Issue 3, 3 December 1931, Page 7

SALES OF STERLING

NEW YORK MOVEMENTS. IMPROVED POSITION. QUESTION OF STABILISATION. (United Press Association.—By Electric Telegraph.—Copyright.) Received December 3, 9.45 a.m. NEW YORK, Dec. 2. The pound sterling put up a stiff resistance to further selling to-day and after a rally of two and a half cents at the opening it quickly raced up to 3.451 for a gain at that price of 14i cents, off-setting tho heavy loss scored on the previous day and part of Monday’s decline. Wall Street banking houses reported that the offerings had dried up temporarily at least, and on comparatively small buying orders tho market rose rapidly. Sharp excited movements of this kind are likely to be seen, according to those authorities, until the sterling finds its intrinsic value level. Just what this will be in terms of dollars no banker can accurately estimate. It will be decided by the world exchange markets. An earlier message from London stated:— The Times’s city editor says that Continental selling was chiefly responsible for the further spectacular fall in the pound. The New York rate touched the lowest point since 1920. The amount of business transacted was comparatively unimportant, to which dealers do not attach much significance. The movements of the sterling market at. present are so limited that the offer of a small sum of sterling depresses the New York rate. The position is better understood on the Stock Exchange than on Monday, accounting for the brighter tone of tho markets.