GOLD USED TO HELP STERLING

Press, Volume CVI, Issue 31081, 9 June 1966, Page 17

GOLD USED TO HELP STERLING

(N.Z.PA. Reuter —Copyright) LONDON, June 8. The Bank of England dipped into Britain’s dwindling gold and dollar reserves in a bid to halt the pound when it dropped to its lowest level since November, 1964.

Some of the pressure on the currency, noticeable as soon as the foreign money market opened, was blamed on the effects of the seamen’s strike and the possibility of increases soon in official interest rate levels in several European countries. Britain’s own bank-rate will

come up for weekly review tomorrow. Another factor which did not help sterling was the routine switching of sterling holdings into dollars needed to settle transactions in the New York money market on Thursdays. Farewell Lunch Later in the day the rate settled around 2.7884 dollars. As sterling lost ground, Lord Cromer, who Will soon retire as governor of the Bank of England, flew to Paris for a farewell lunch with the governor of the Banque de France and French financiers. In an informal statement at London airport he said that although the bank was naturally disturbed that the currency was losing its value internationally, no new circumstances had arisen in the last few days to give cause for any additional alarm.