from a student of economics
Although it had picked up slightly the following day, Sterling fell to its lowest levels against the U.S. dollar for 7 years in the foreign exchange market on August 27th. It finished the day 1/32 of a cent above its lowest, at 2 dollars 78 13/32 cents = this being only a little above the lowest level normally allowed, 2 dollars 78% cents. The major reasons for these losses were the continuing disappointment over the trend of exports, and the fact that no change in the. bank rate had been announced, The price was bolstered by the action of the Bank of England in giving support by making purchases of Sterling. On Friday the 28th Sterling rose by 1/32 cent on balmce, but the overall loss over the week was one of 3/16 cent. The figures ,which will seem very obscure to the laymen,say more than all the speeches by Maudling about the British economy. The possibility exists of a speculative run on the pound at a time when the trade figures are almost disastrous.