• Short Summary

    The dollar came under fierce pressure on Monday in Paris, London and other foreign exchanges in Europe.

  • Description

    The dollar came under fierce pressure on Monday in Paris, London and other foreign exchanges in Europe.

    Heavy speculative activity started after a United States Congressional sub-committee concluded that the dollar was over-valued. This film from NBC News shows hectic foreign exchange dealing in Paris and London.

    When the dollar weakened against most currencies, the Swiss france and German mark took most of the dollar inflow.

    The Swiss france firmed quickly to the 4.0600 level, and Swiss bankers tried to damp down speculation by delaying payment for dollar purchases.

    In Germany the dollar feel to a new low at one point of 3.3960, equal to a 7.6 per cent revaluation of the mark. It was the lowest dollar price and highest mark price since the mark was floated from its fixed ratio of 3.66 to the dollar on May 10.

    In London the Bank of England took in dollars to stop the pound going through its official ceiling of two dollars 42 cents. A new interest in gold pushed up the gold price 1.04 to 43.94 dollars.

    SYNOPSIS: In Paris, London and other foreign exchanges in Europe on Monday, the dollar came under fierce pressure. Heavy speculative activity started after a United States Congressional sub-committee concluded that the dollar was over-valued. Immediately the dollar weakened against moat currencies, and the swiss franc and German mark took most of the dollar inflow. Among the French Central Bank's measures to reduce speculation was an order to Commercial banks to refuse to buy speculative dollars entering France in the home of a France revaluation. And on a more humble level, these travellers were cashing their travellers' cheques before their dollars lost value.

    Central Banks throughout Europe moved on Monday to support the dollar. Swiss bankers tried to damp down speculation by delaying payment for dollar purchases. In Germany there was a real rush from the dollar, and the market produced the lowest dollar price and highest mark price since the mark was 'floated' from its fixed ratio of 3.66 to the dollar on May the tenth. In London, the Bank of England took in dollars to stop the pound going through its official ceiling of two dollars 42 cants. The free Gold price jumped 1.04 on the London market to 43.94 dollars. A possible French move in the present situation would be to ask the United states to convert into gold speculative dollars flowing into France. This would discourage the main speculative offenders - the multi-national companies based mainly in the Unites States.

  • Tags

  • Data

    Film ID:
    VLVA5A710SOBDQC68G1ILRJFEALR
    Media URN:
    VLVA5A710SOBDQC68G1ILRJFEALR
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    09/08/1971
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:28:00
    Time in/Out:
    /
    Canister:
    N/A

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