Sterling: lifted by election
Article Abstract:
The pound sterling showed the greatest strength among all major currencies for the spring of 1992. For the three months ending May 20, the sterling appreciated by 4.7% against the dollar, 5.2% against the yen, 3.7% against the Australian dollar, 1.8% against the Deutche mark, 1.5% against the peseta, and 0.7% against the French franc. It traded at a high rate of $1.80s was during the mid-portion of May, rising steadily from the low $1.80s for late March and on to the high $1.70s throughout April. The victory of the Conservative party in the general elections held on April 9 served as the main factor for sterling's strong rally and provides indications of the stabilizing influence of its membership in the European Monetary System (EMS). With reference to the EMS, the sterling safely stayed at or near its minimum permitted level.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1992
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Sterling - weaker on inflation worries
Article Abstract:
The pound sterling depreciated against the dollar and other major European currencies during the summer of 1989. The weakening is a result of worries over inflation. Inflation in the UK is currently running at an annual rate of 8.3% against approximately five percent in the US and 2.5-3.5% in France, West Germany, and Japan. The value of sterling is suffering from fears that high inflation will lead to demands for wage increases. Continued weak growth in internal demand should lead to a slow down in both inflation and profit-taking, leading to a subdued economy which will eventually temper wage demands. The government will be interested in stimulating the economy by loosening monetary policy after inflation is brought under control in order to raise living standards in preparation for possible elections in autumn 1991.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1989
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Sterling - EMS no easy tiger to ride
Article Abstract:
The pound sterling, which became part of the European Monetary System (EMS) on 8 Oct 90, displayed unexpected weakness. The pound declined steadily after 8 Oct against the deutschmark, though it remained stable relative to the US dollar due to the latter currency's depreciation. Between 8 Oct and 10 Dec, the pound declined 5.5% against the DM. The pound is troubled by high inflation in the UK, which was running at 11%. The fiscal discipline enforced by membership in the EMS may see inflation decline to between 3% and 4%.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1990
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