Mark rises on rumours of convergence delay
Tuesday 25 February 1997
The mark rose to its highest level against the dollar in two weeks amid worries about European monetary union. The dollar fell to DM1.67 compared to Friday's close of DM1.688.
The prospect of delays to EMU reduces the likelihood of a broad-based EMU encompassing the weaker lira and peseta as well as the mark at an early date, and so raises traders' confidence in the mark.
Meanwhile analysts claimed that investors were switching funds away from bonds which had been heavily affected by EMU speculation and into gilts instead. "We're advising switching out of Spain into the US, and out of Italy into the UK," said Phyllis Reed, European bond strategist at BZW in London.
Speculation that the starting date for EMU might be delayed was provoked by a poll in Germany's weekly news magazine Der Spiegel on Sunday, showing 77 per cent of Germans favoured a delay to EMU. At the same time, a report in another German magazine, Focus, claimed the German finance ministry expected the country's national debt to rise this year to 61.5 per cent of GDP from 60.5 per cent last year, above the Maastricht ceiling of 60 per cent.
If Germany cannot meet the Maastricht criteria, it will make it far more difficult for EMU to go ahead without countries such as Italy, which may also miss the criteria only by a small amount. Analysts suspect that Germany will push for a delay in EMU rather than go ahead on a fudged basis with Italy as part of the first wave.
Comment, page 17
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...