Opened at 3.57 and Closed at 3.80
New York, June 11.
Sterling temporarily advanced more than 30 points today, as a result of a sudden expansion of demand based on the desire to close existing merchandise contracts calling for settlement at a free date.
The cross-rate on London opened at 3.57 and closed at 3.80, against the previous final level of 3.53%. The high for the day was 3.86 and the low 3.53.
Banks, it is reported, are unwilling to carry short accounts of free sterling; hence, they are urging their clients to clear current obligations, in view of the serious turn of events abroad.
The action of the market, which occurred on very light transactions, was regarded as an indication that the short position was more important than previously believed, while there was much speculation as to whether the short position equalled the amount of foreign balances held in London; if so, it was calculated that holders' could demand any rate up to the official quotations.
Meanwhile, bankers have discounted as unlikely the possibility of action by the United States to restrict the use of Italian balances here, as it is pointed out that Germany also has full control of funds here.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.