Sterling Improves

Press, Volume CVI, Issue 31086, 15 June 1966, Page 17

Sterling Improves

(N Z P.A.-Reuter—Copyright> LONDON, June 14.

Sterling improved slightly against the dollar on the foreign exchange market in London yesterday after the Basle announcement that foreign central banks would continue to shore up

the £. But the increase was not as high as it might have been because of market nervousness over the publication expected later today of Britain’s overseas trade returns for May.

The £ lifted yesterday morning from Friday night’s closing rate of 2.7890 United States dollars, with buying orders from the United States and Europe in anticipation of

the Basle announcement, and after it was made at noon sterling touched 2.7905 dollars for a brief period. But this brighter patch was partly offset by fears of adverse effects of the national seamen's strike and the May trade figures—and the £ closed at 2.7901 dollars. Other world finance centres reported rises in sterling after the announcement.

Sterling increased in value on both the New York and Montreal money markets. At noon trading in Montreal. sterling was up 3/16 at 3-9/16 Canadian dollars and in New York it was quoted at 2.7900. up 12 points from 2.7888 United States dollars. Washington officials said the Basle announcement was “very constructive.”