STERLING SAGS IN LONDON

Southland Times, Issue 23677, 28 November 1938, Page 5

STERLING SAGS IN LONDON

RECORD OFFICIAL GOLD PRICE LONDON, November 25. With the official gold price at the highest record for all time, sterling sagged to within 4 per cent, of the September crisis. The low pressure of sterling has persisted all the week, the source being partly continental and partly domestic. The banks are reporting a moderate outflow of funds held on foreign account. Above all, the international situation and the gloomy Budget prospects hang over sterling, relief of which appears less likely than ever. Many believe, in spite of official assurances to the contrary, that a secret arrangement involving a substantial downwards adjustment of the sterling and dollar rate accompanied the Anglo-American trade treaty. . International uncertainties also dominated the stock markets. Selling was not heavy but resistance to it has weakened. War loan closed at £99 and old Consols at £7l 10/—a moderate loss after a gloomy week. Colonials and foreign bonds mostly followed gift-edgeds. Australians ended a little steadier than New Zealands.