The British currency, sterling, slumped to an all-time low against the West German mark when it changed hands on the West German foreign exchange market in Frankfurt on Monday (8 March) at 4.99 marks.
W. Germany. Cu Sign ZOOM OUT TO GV stock exchange building Frankfurt.
SV and GV financial dealers at work (3 shots)
SV AND GV woman marking up foreign exchange prices and dealers at work (2 shots)
U.K. SVS Money dealers at work (6 shots)
SV Charles Frost of Lloyds Foreign Exchange speaking
SOF STARTS: "I cannot think of any.......
SOF ENDS: .....this way".
FROST: "I cannot think of any specific reason why it has occurred. It seems as if a certain movement once it has started then it is quite likely that people in the world will look at their situation and decide whether they want to cover their future commitments. If they all decide that if the moment in time they want to buy dollars then I think the trend will be this way."
Dealers in Frankfurt said the rapidity of sterling's fall had taken the market by surprise. They said strong intervention by the Bank of England was needed before confidence would return.
Also on Monday starlings plunged five cents against the ??? States dollar, following ??? clids which took the ??? currency below too dollars for the ??? time ever. Dealers continued to ??? sterling, which drooped to one point nine-two-nine-five ??? picking up slightly with Bank of England help. British foreign exchange dealer Charles Fr??? of the current ???......
Initials RH/0205 RH/MF/AH/0220
TELERECORDING part original colour on 2063/76 65ft
This film is serviced with a statement by Charles Frost, a British Foreign exchange dealer. A transcript appears below.
Script is copyright Reuters Limited. All rights reserved
Background: The British currency, sterling, slumped to an all-time low against the West German mark when it changed hands on the West German foreign exchange market in Frankfurt on Monday (8 March) at 4.99 marks. This is the first time it has ever dropped below the five-mark level.
The pound sterling, which had closed on Friday (5 March) at 5.095 marks, plunged lower as currency holders displayed what dealers described as a complete lack of buying interest. It had opened on Monday morning at around 5.030 marks.
Also on Monday sterling plunged five cents against the United States dollar, following Friday's slide which took the British currency below two dollars for the first time ever. Dealers continued to unload sterling, which plummeted to 1.9295 dollars before picking up slightly with Bank of England help.
The French franc was also under heavy pressure, falling to around 56.70 marks per hundred francs from Friday night's 57.04.