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MONDAY, MAY 23, 1983
US DOLLAR EXPECTED TO REMAIN FIRM
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COMMENTING ON THE MOVEMENT OF THE HONG KONG DOLLAR AGAINST THE US DOLLAR, A GOVERNMENT SPOKESMAN SAID TODAY THAT THE JUMP OF US DOLLAR 7 BILLION OVER THE WEEKEND IN THE USM1 FIGURE WAS FAR GREATER THAN EXPECTED. THIS BIG INCREASE HAD REINFORCED THE MARKET VIEW THAT US INTEREST RATES AND THE US DOLLAR WILL REMAIN FIRM. AS A RESULT, OTHER CURRENCIES HAVE WEAKENED AGAINST THE US DOLLAR.
THE SPOKESMAN POINTED OUT THAT SINCE THE CLOSE OF BUSINESS IN HONG KONG ON FRIDAY, FOR EXAMPLE, STERLING HAD WEAKENED AGAINST THE US DOLLAR BY 0.25 PER CENT, THE DM BY 0.8 PER CENT, THE SF BY 1.2 PER CENT AND THE YEN BY 0.9 PER CENT, THE HK DOLLAR, ON THE OTHER HAND, STRENGTHENED BY 0.3 PER CENT IN THE SAME PERIOD. THEREFORE THE HK DOLLAR HAD STRENGTHENED AGAINST ALL THE OTHER CURRENCIES SINCE THE CLOSE OF BUSINESS ON FRIDAY - THAT IS BEFORE THE HONG KONG ASSOCIATION OF BANKS ANNOUNCED THE INCREASE IN INTEREST RATES.
QUARTERLY BUSINESS SURVEY ***
THE CENSUS AND STATISTICS DEPARTMENT TODAY RELEASED THE RESULTS OF THE QUARTERLY BUSINESS SURVEY CONDUCTED IN APRIL.
ABOUT 800 FIRMS FROM VARIOUS INDUSTRIES AND BUSINESSES, FORMING A CROSS-SECTION OF THE ECONOMIC COMMUNITY, WERE ASKED ABOUT THEIR BUSINESS EXPERIENCE IN THE FIRST QUARTER OF 1983, AND THEIR BUSINESS EXPECTATIONS FOR THE SECOND QUARTER OF 1983.
RESULTS OF THE SURVEY INDICATE THAT WHEN TAKEN AS A WHOLE, THE BUSINESS SITUATION OF FIRMS IN THE MANUFACTURING' SECTOR DURING THE FIRST QUARTER OF 1983 WAS SIMILAR TO THAT OF THE FOURTH QUARTER OF 1982. THIS WAS CONTRARY TO THE PREVIOUS PREDICTION FOR A CONTINUED DOWNTREND IN BUSINESS, ALTHOUGH THERE WERE VARIATIONS AMONG FIRMS REGARDING THEIR EXPERIENCE.
AS FOR THE SECOND QUARTER OF 1983, A STRONG UPTREND IN BUSINESS IS ANTICIPATED.
'ELECTRONICS'
THIS IS PARTICULARLY EVIDENT IN THE 'PLASTICS' AND 'ELECTRICAL MACHINERY, APPLIANCES AND SUPPLIES' INDUSTRIES,
AS FOR THE 'CONSTRUCTION' SECTOR, FIRMS CONTINUED TO REPORT BUSINESS DETERIORATION IN THE FIRST QUARTER AND ARE STILL PESSIMISTIC ABOUT BUSINESS PROSPECTS FOR THE SECOND QUARTER.
FOR THE