The U.S. dollar has again been under pressure on London's money market. But Tuesday's (5?
GV London street scene
GV & CU INT Midland Bank Foreign Exchange Room (2 shots)
MV Switchboard TILT UP TO Mr. Ken Einfeldt Chief Manager speaking to reporter.
GV London streets
MV Interviews with tourists
INTERVIEWER: "Mr. Enfeldt what is happening to the dollar at the moment?"
EINFELDT: "Well we have a very weak dollar this morning. The selling started late yesterday afternoon from the continent, and the pace has quickened this morning. Apart from the Italian Lire and Sterling, which are of course still floating, the other currencies, which remain as the snake within the so-called tunnel, appreciated by about one per cent against the U.S. dollar this morning, already."
QUESTION: "Have you had any trouble cashing your dollars this morning?"
"No I didn't have any trouble, I just get very little for it."
QUESTION: "Are you losing very much at all?"
"Yes I am."
QUESTION: "They won't take your dollars?"
"You go to Europe with Australian and British, very difficult."
"I lost a hall of a lot of money on the American dollar, it's getting to be ridiculous. Germany's outrageous, in France you're losing all the time, in Denmark, Holland. Everywhere you go, the dollar like is not cutting it too well."
QUESTION: "Have you had any trouble cashing cheques at all?"
"Cheques, I haven't had any trouble I've even been to some hotels in Greece and had no problems. We can here a year ago, just after the dollar was devalued, the first time, lost money on that. And about six months after that the dollar was devalued again, and lost money on that. The pound was devalued after we'd exchanged all our money into pounds so we lost money on that. Since, we've been buying Swiss France, and felt a little bit more secure. But we ran out of Swiss France, bought dollars again, and the dollar has been sinking ever since. Now we're going home with dollars and hope that it will be all right."
Initials BB/0125 IG/AH/BB/0136
Script is copyright Reuters Limited. All rights reserved
Background: The U.S. dollar has again been under pressure on London's money market. But Tuesday's (5 June) performance was an improvement on the previous day's. After dipping sharply in the morning, the dollar rallied in the afternoon to finish above the level set at Monday's close -- 2.5815 against the pound, as compared with 2.5843 on Monday.
Dealers said that the late rally was attributable to some light profit-taking, and the exhaustion of the week's selling pressure. But they were cautious about the strength to the rally, seeing the continuing disclosures about the Watergate scandal as inhibiting any action the U.S. government could take to support the domestic economy.
Visnews reporter Grant Dowling asked Mr. Ken Einfeldt, Chief Manager of the Midland Bank's Foreign Exchange Market, about the latest pressure on the dollar.
The pressure on the dollar affects ordinary tourists as much as foreign exchange buyers. Americans outside the American Express Offices in London were asked if they were encountering any problems.