Money markets throughout the world were busy trading as the U.S. Dollar sank to record?
GV Interior Money Exchange
CU Buyer on telephone quoting prices (in German)
CU Hands on calculator. Prices being written on board (2 shots)
CU Exchange experts on telephone quoting current prices (2 shots)
CU Tellers and current prices on blackboard (2 shots)
It is only massive intervention from Japanese and European central banks which has stooped the Dollar from sinking even lower. In contrast the price of gold rose to record heights for the second successive day and was fixed at 233.70 Dollars an ounce in London in the afternoon of October 26th.
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Background: 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.