25 September 1998

Devaluation hope

STERLING narrowly missed a devaluation last week, but signs were more hopeful on Wednesday, three days into the new 10-day reference period.

The gap between the £s market value and the green £ rate was 2.09%, according to the HGCA. If the difference exceeds 2% through to next Wednesday (as a quick check, the £ needs to trade at an average of about DM2.84), a devaluation will be triggered. The intervention price of grain would rise by about 80p/t. &#42