A CHANGE OF FRONT

Otago Daily Times, Issue 22353, 29 August 1934, Page 9

A CHANGE OF FRONT

■ STERLING SPECULATORS FALL IN POUND CHECKED ■ LONDON, August 28. (Received August 29; at 0.30 a.m.) The Daily Telegraph’s city editor says Continental speculators who have been selling sterling ■ suddenly, changed their tactics and began to, sell Continental gold currencies, with the result that the fall in the pouud was checked. The change of 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 sales of sterling, which are traceable to speculators who beUvee that President Roosevelt is heading for inflation and the pound is 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 have been paid for.”