Money markets throughout the world were busy trading as the U.S. Dollar sank to record?
Money markets throughout the world were busy trading as the U.S. Dollar sank to record levels against the German Mark and the Japanese Yen.
SYNOPSIS: This is the Frankfurt Money Exchange where trading was busy on Thursday (26 October)
The main forces undermining the U.S. Dollar are the fundamental problems of the American economy, which is suffering from rapidly rising inflation and a huge chronic foreign trade deficit.
President Carter has announced long-term plan to fight inflation, but the lack of effective short-term measures has reportedly caused the instability. International currency markets have given the measures a poor reception.
By the time trading closed at Frankfurt the U.S. Dollar had dropped to 1.7595 Marks. It first fell below the 1.80 Marks level earlier in the week. On the same day in 1977 the U.S. Dollar was traded in London at 2.26 Marks. And on the London Foreign Exchange market its value against the Japanese Yen on the 26th October was 178.23, as against the previous year, 251 Yen.