The U.S. dollar's upward march on foreign exchange market has encouraged a bonanza spending spree among American tourist as major currencies continue to fall against the surging U.S. dollar.
18 SEPTEMBER UK (WALLER)
SV & GV Inside of money dealer's exchange (7 SHOTS)
18 SEPTEMBER JAPAN (TANAKA)
SV & GV Inside of money dealer's exchange (5 shots)
15 SEPTEMBER YUGOSLAVIA (TURK)
SV & CU Man at exchange counter buying U.S. Dollars (3 shots)
GV & SV People in line at market for food (4 shots)
SV & GV Tourists walking in square in Ljubljana (3 shots)
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Background: The U.S. dollar's upward march on foreign exchange market has encouraged a bonanza spending spree among American tourist as major currencies continue to fall against the surging U.S. dollar. At the close of September 19 business on the London Stock Exchange, the pound sterling stood at 1.2370, the West German mark at 3.09, the Swiss franc at 2.55 and the Japanese yen a 245.75 against the U.S. dollar. Dealers in London and Tokyo said the recent fall in value of virtually every major currency was due to panic dollar buying in the belief that President Reagan will be re-elected on November 6. News of a record 24.40 billion dollar U.S. current account deficit apiaries to rule out an early easing of high interest rates, viewed as the original cause of the dollar's dramatic rise. The dollar's strength is also evident in Asia, where its value is also on an upward trend. Europe and Japan have not been panicked by the dollar's relentless rise, and see not need t raise their own interest rates to reduce the U.S. currency;s appeal. The dollar is also strong in Eastern Europe. In Yugoslavia it has increased in value ten times in eight years - coupled with an inflation rate of more than 50 per cent in three years. Even though the shops are filled with tourist goods and the country yields over one billion short of hard currency for purchases abroad.