United States' dollar continued to take a battering on Tuesday (31 October) on the world's money markets in the wake of President Carter's announcement of measures to reduce inflation in his country.
GV & SV London exchange house. (4 SHOTS)
CU Display board with changing exchange rates shown.
GV Gold bears wheeled into room.
SV Gold being weighed and put back onto pallets. (2 SHOTS)
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GV & SV Le Bourse in Paris, traders dealing in dollars with exchange rates shown on blackboard. (6 SHOTS)
GV United States stock exchange with dealers involved in trading (4 SHOTS)
SV & CU Dollars being counted out at bank. (2 SHOTS)
GV Stock exchange activity. (3 SHOTS)
SV TILT UP TO Board showing exchange rates.
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Background: United States' dollar continued to take a battering on Tuesday (31 October) on the world's money markets in the wake of President Carter's announcement of measures to reduce inflation in his country.
SYNOPSIS: In London on Tuesday the dollar continued to fall with a gathering momentum. It sank to four French Francs, and one point seven three West German Marks for a while and the Pound Sterling closed at two United States dollars and eight cents. There were some signs that the dollar might be steadying on the London Foreign Exchange at midday although rates were still well down on last week's prices. Many dealers found it difficult to pinpoint exactly what was causing the dollar's latest bout of weakness. Some said the dollar's slide seemed to have a momentum of its own. As a reflection of the confusion and anxiety on the world's money markets, the price of gold - the traditional standby in times of currency unrest - soared on Tuesday to a record price of two hundred and 43 point 65 dollars an ounce.
The fixing price at the London Bullion House was the eighth consecutive record and compared with the previous afternoon's price of two hundred and 42 point seven five dollars an ounce. In Paris, at the Bourse, the official closing rate on the dollar was four point-oh-one Francs. One French international bank economist said in Paris on Tuesday that the weakness of the dollar could provoke a world financial crisis. The expert, Mr. Yves Laulan said however it could be just a necessary adjustment process.
On the New York stock exchange, market prices dipped sharply again on Tuesday in the face of rising interest rates and fears of still higher inflation. It is reported that there are still fears among investors that President Carter's programme to fight inflation will not work. The President called on Tuesday (24 October) for a limit on wage increases of seven percent and price rises of five pint seven five percent. He conceded it was no magic remedy for inflation, and then, the dollar started its tumble.