Pressure On Sterling In Last Month .

Press, Volume C, Issue 29510, 11 May 1961, Page 19

Pressure On Sterling In Last Month .

(New Zealand Press Association)

AUCKLAND. May 10.

Sterling has been subjected to considerable pressure during the last month, first because of the Algerian revolt and second because of the invasion of Cuba, says the National Bank of New Zealand in its review of the foreign exchange market. In the first case sterling suffered, while the French franc once more displayed its impressive strength, falling only slightly below its ceiling against the dollar.

After the March fall of £62 million in the United Kingdom’s gold and convertible currency reserves, there was a further fall during April of £26 million. Once again this had little effect on the exchange market.

The flow is actually

understated, as European central banks have recently been holding their gains of sterling, in line with their Basle agreement. There will have to be a further consolidation of this informal agreement if the central bankers’ fight against the speculators is to be successful. Dollars Firm

On the New Zealand market both the Canadian and the United States dollar have been steadily hardening against the £N.Z. since the last review. Fluctuations have resulted in spot quotations of the Canadian dollar being approximately 7s 6d per £lOO against importers and in favour of exporters, while the United States dollar has fluctuated approximately 3s per £lOO against importers and in favour of exporters. The forward premiums for both currencies remain unchanged. The Continental and Scandinavian currencies have all moved against the £N.Z. with the exception of the Danish kroner and Norwegian kroner which have depreciated slightly.

Eastern currencies on the whole remain constant although the price of Japanese yen in relation to the £N.Z. has eased slightly.

WOOL PRICES FIRM FREMANTLE, May 10. Values at today’s Fre. mantle wool sale were fully firm on yesterday’s opening, which was 15 per cent, up on the last Fremantle sale in March. Competition was keen and strong, with Japanese buyers most active and support from Eastern Europe. Prices were generally unchanged from Monday’s prices at the Brisbane wool sales today, says a Brisbane message. Competition was again widespread and keen, with Japan and the United King, dom the leading buyers. There was good support from. Eastern Europe. Melbourne Prices

Values remained at much the same levels as the first two days’ upward trend at the Melbourne wool sale today.

Competition was well main, tained with Japan still the strongest buyer. Crossbred prices were:— Good 56's, 72d per lb; good 50’s, 71d,

London Wool Sales.—London Woolbrokers, Ltd., have announced that at a joint meeting with the London Wool Importers’ Association, the London Woolbuyers’ Committee, and the warehouse keepers it was decided that there would be no alteration to the London MayJune sales, which will open on May 29 and last a fortnight.— (Reuter)

Business Personal

Mr J. A. Mercer, secretary of J. Mercer Industries, Ltd., left on Tuesday for a six months’ trip overseas. Mr D. R. McCormick is acting secretary in Mr Mercer’s absence.