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August 1 , H-13 d ^ g g g e N g . 621 Division of International Finance, statistical & Data Management Unit SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS BOARD OF GOVERNORS OF THE FEDERAL RESERVBSVSTEM H.13 August 1 , 1973 No. 621 TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1 - Spot Exchange Rates, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and B - 3-Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 - Call Money Rates Chart 6A and B - London: Euro-) Deposit Rates Chart 7A and B - New York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Germany and U.S.-Switzerland Chart 11 - Interest Arbitrage: United States-Canada Chart 12 A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was published under that title through December 31, 1968. The changes in the format and order of the charts are explained in the Supplement to the series, tiiich accompanied issue dated January 1, 1969. All series and their sources are fully described in a Supplement dated January 1, 1972. 3 SUTPLQOmAY l CEiM 1 SELICIKD EXCHANGE RAXESF -ROM JAMUAtY, 1973 Weekly averages (week ending on Wednesday) of dally offered rates in the Sew Y,.rk market at percent above or belt*# Smithsonian central rates. . t 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST U S. DOLLAR Weekly averages Per cent per annum 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 1 I I 1 1 1 1 1 | 1 1 | 1 1 | 1 1 PREWHUM + C A N INDIAN D O L L A R A. A *** U.K. P O U N D - A DISCC>UNT PREM IUM + A - GERMAN MARK v*•v A ^ a /Ai DISCO UNT | PREM IUM + DUTCH GUILDER fl ! i DISCOUNT - 1970 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 2-3. - • * Canadian Dollar Rate not supported by Bank of Canada. \ . 1972 i ! M 1973 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST U.S. DOLLAR Weekly averages 1 1 1 1 1 1 1 I i 1 1 1 I | I I | 1 1 | 1 1 • ' I I ' ' ! ' ' Per cent per annum PREMIUM + FRENCH FRANC - v W / X DISCOUNT PREMIUM + SWISS FRANC j — v AA DISCOUNT ! I M 1 1 1 1 1 I J S 1 1 1 D I I M 1970 1 l l 1 l l J 1 I S 1 1 1 I I l D 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 2-3. M 1 I I J 1972 I S I I i D M i 1 i i i i J 1973 i I S i i D 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum GERMAN MARK U.S. D O L L A R DISCOUNT - M J S D 1970 M J S D 1971 See DESCRIPTION AND SOURCES OF DATA. January 1. 1973. p. 3 1972 1973 1 Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Per cent per annum Friday figures 16 PRE*/IIUM + - - 12 — - 1 SWISS FRAft c - iJiNi •fj - M VFRENCH FRANC • DISCOlJNT — 1 111111111 1 M J S D 1970 II M 1111111111M J S D 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, p. 3. 1 1 1 1 1 1 1 1 1 11 1 i 1 1 1 1 1 I II . M J S 1972 D M J 1973 S D ChaiJfc 4 QOID teCE I N LONDON, 1 2 . 5 Kg BARS Week's average of afternoon f i x i n g s . d o l l a r equivalent!per f i n e owjoe 130 120 19 7 1 Latest figure plotted: 19 J u l y 2 7 , 1973 7 3 Chart 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages I'. os Per cent per annum OVERNIGHT EURO-DOLLAR D E P O S E S CALL E U R O - D O L L A R D E P O S I T S FEDERAL FUNDS FAVOR EURO-DOLLAR E U R O - D O L L A R OVER FEDERAL FUNDS EURO-CURRENCIES Weekly averages Per cent per annum EURO-DM EURO-SWISS FRANC M J S D D 1970 1971 * Changed from CALL to OVERNIGHT Euro dollar deposits. May 10, 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 4-6. S 1972 D M J 1973 S D Chart 5B CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES. Friday figures Per cent per annum FRANCE NETHERLANDS CANADA GERMANY 11 I I i 1973 France, Day-to day Money; Netherlands, Call Money, v.eek!v average; Japan, Unconditional Money, Canada, Day-to-day Loans, weekly average; Germany, Call Mon.-,\ U K , 2 day Local Authority Deposits. See DESCRIPTION AND SOURCES OF DATA, January I , 1973, pp 4 6 Chart 6A LONDON: EURO DOLLAR DEPOSIT RATES Knday figures Per cent per annum 15 0 0 OVERNIGHT CALL 7 DAY 12 1-MONTH M J S D M 1970 # J S D 1971 M a y 1 2 / 7 1 - c h a n g e d to Overnight Euro-Dollar Deposits * * July 1—changed to 7-Day Euro-Dollar See DESCRIPTION. * \ D SOURCES OF DATA, January 1, 1973, p. 6. M J 1972 S D M J 1973 S D r LONDON: EURO DOLLAR DEPOSIT RATES Friday figures Per cent per annum - - \J V\ 3-MONTH / - f - - 1 1 1 1 1 1 1 1 o1 I 1m1 I i . I m I i I i i 1 i ; 1 I ii i 1 i I 1 i I 1 i l 1~ J ~ \ V \ 6-MONTH f - • - 1 i I 1 l 1 1 1 1 Il I l 1 1 1 1 1 1 1 l 1 1970 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, p. 6. i I 1i i 1l i 1I I 1972 — MIOII.IM 1973 3 NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per annum EURO-DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT Llj_1 FAVOR EURO-DOLLAR DIFFERENTIAL EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT j S D 1970 VRII'i ion AMI, MJURCi :bOf M J S D 1971 DATA. January 1. 1973. pp 6 NEW YORK-LONDON: COST OF U.S. DOLLAR FUNDS 3 - M O N T H D O L L A R DEPOSIT R A T E S - P R I M A R Y M A R K E T Wednesday figures • Per cent per annum EURO DOLLAR DEPOSIT ADJUSTED EURO-DOLLAR DEPOSIT U.S. C E R T I F I C A T E O F D E P O S I T ADJUSTED EURO DOLLAR OVER U.S. C E R T I F I C A T E OF D E P O S I T I ADJUSTED * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * Adjusted for 20% Marginal Reserve Requirement See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp 6 7 Chart 8A LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS , HIRE PURCHASE/STERLING CD's vs EURO-DOLLAR RATES Friday figures Per cent per annum EURO-DOLLAR DEPOSIT HIRE PURCHASE COVERED STERLING CD's FAVOR STERLING CD'S DIFFERENTIAL FAVOR EURO DOLLAR 1970 1971 1972 * Hire Purchase suspended August 11. 1972 and Sterling Certificates of Deposit begin August 11. 1972 Svv DISCRETION AND SOURCES OF DATA January 1, 1973, pp. 7 1973 LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RATES Friday figures Per cent per annum 12 EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT COVERED FAVOR LOCAL AUTHORITY DIFFERENTIAL FAVOR EURO DOLLAR I i i I i i M j S i i I i i I i i 1 i i D 1970 M J S D 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 7-8. i i 1 i i 1 i i 1 i r M J 1972 S D ii I i i 1 i i 1 I I M J J 1973 S O 8 Chart 9A INTEREST ARBITRAGE: UNITED KINGDOM AND UNITED STATES Friday figures Per cent per ann 3 - M O N T H TREASURY B I L L RATES U.K. LOCAL A U T H O R I T Y D E P O S I T S UNCOVERED NEW Y O R K LONDON, NEW Y O R K s C 1970 J S D 1971 * Plotted for comparison purposes See DESCRIPTION AND SOURCES OF DAI A, January 1, 1973, pp. 8-9 S 1972 D M S 1973 D INTEREST ARBITRAGE: UNITED KINGDOM AND UNITED STATES Friday f i g u r Per cent per annum RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING PREMIUM SPREAD IN FAVOR OF LONDON FORWARD RATE DISCOUNT FAVOR LONDON RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER FAVOR NEW YORK 1970 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp 8-9. 1972 1973 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR-GERMAN MARK FRANKFURT INTERBANK LOAN RATE Vs'. LONDON EURO DOLLAR RATE Wednesday rates 14 25 Per cent per annum GERMAN INTERBANK LOAN RATE EURO-DOLLAR COVERED u VOR FRANKFURT DIFFERENTIAL r I I I I I I 1970 1971 :> DESCRIPTION AND SOURCES OF DATA, January 1. 1973, pp 9 10 —— No quotation AVOR EURO DOLLAR I I I M nP Chart 10B 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum SWISS DEPOSIT RATE EURODOLLAR COVERED a FAVOR ZURICH DIFFERENTIAL FAVOR EURO-DOLLAR J s D M 1970 J S D 1971 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 9-10. M J 1972 S D M j 1973 8 S b Chart 11 3-MONTH INTEREST ARBITRAGE: CANADA - UNITED STATES Per c e n t per annum Friday figures BILL RATES UNITED STATES TREASURY BILLS CAN. FIN. CO. PAPER CANADIAN TREASURY BILLS PREMIUM BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE GROSS SPREAD IN FAVOR OF CANADA DISCOUNT FAVOR CANADA COVERED RATE DIFFERENTIALS PRIME FINANCE PAPER TREASURY BILLS FAVOR U.S. 1970 See DESCRIPTION 1971 AND SOURCES OF DATA, January 1, 1973, pp. 10-11 1972 1973 2* Chart 12A SELECTED SHORT-TERM INTEREST RATES* Per cent per annum J — V - " ;/ , 1^ - / 1 / L -vo \ VVX/ V v K J\ ( 1 "V GERMANY x i 11111 1 1 1 II 1 II 1 1 1 i / - / v y m 111 y ' . U.S. LLI i J J i 1 i i '1 1 1 II 1 1 1 1 1 1 II 1 1 1 1 1 1 1 II 1 1 1 1 - 1 -X „ - y /' I L v v ~ r f l f\r i V U.K. / " - ft / u.s. 11 1 1 1 1 1 1 1 M II 1 1 I 1 1 1 1 II 1 1 I 11 I I I 111 II 1 1 1 1 II 1 II i i 1 i i 1 i i 1 i i JAPAN ^MONTHLY - • i M 1970 h i i i 1 i i i i i i i i 1971 ' 1972 : M : 1973 * 3 month treasury bill rates for all countries except Japan(Average rate on bank loans and discount. and Germanydnterbank Loan Rate) See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 11-12. 1974 Chart 12B SELECTED SHORT-TERM INTEREST RATES Per cent per annum 12 - Vv, A v 0 DOLLAR - LONDOI e / vrt - 1 te ! II 1 1 1 111 11 11 11 1 11 1 1 1 1 1 11111111111 1 1 1 1 1 \- V\ V' / l / / lyx \A v U.^y > i 1 in. 1 1 1 1 1 1 111111111111 1 1 1 1 .V I A 1 1 1 11 11 11 11 1 1 1 1 1 1 1 f / - \ [ j |J r—' -J j SWITZERLAND I 11 I1l 1 ll 1 1 1 1 1 1 1 1 1 l I 11) 1l 1 II 1 l l 1 l I y\ - i - U.S. Y\ J Vv V\ r vAx V r a^.x M/ i : M i i ii I II 1970 111 II i M i M 1971 CANADA 1 i 1 1 1 1 II 1 111 11 1 1 1 1 1 ! 1! !1 1 1972 1973 1974 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 11-12. V LONG-TERM BOND YIELDS Weekly figures - w NETHERLANDS ^ - "U.S. SWITZERLAND 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 111 I 1I 1 1 1 1 1 l 11 11 1l l 1 l i 1 i I II 1 1 1 1 1 1 1 1 1 /hj U.K. - u / A \ r GERMANY/^ y CANADA - V - — 1 1 1 1 1 1 I I 11 11 11 1 1 1 1 1 111 I 1 I 1 1 1 1 1 I 1I 1 1 1 1 1 1 11 11 11 1 1 1 1 1 1 1 1 Monthly figures U.S. CORPORATE: A " / v DOLLAR EURO-BONIDS - x . — / - ' A X X < AaaBONDS L / DM EURO-BONDS ' i ; • i 1970 . 1 : : 1 : : 1 , 1971 i I i i 1 ! I i i i 1972 See DESCRIPTION AND SOURCES OF DATA, January 1, 1973, pp. 12-15. 1 1 1 1 1 1 1 I I 1! 11 !I ! i 1 1 1 1 ; 1 I 1973 1974 Chart 14 INDUSTRIAL STOCK INDEXES Ratio scale, 1958=100 Ratio scale, 1958=100 1 320 UNITED STATES 240 160 1200 JAPAN 480 960 SWITZERLAND Z ^ V SWITZERLAND 640 320 240 UNITED KINGDOM 480 JAPAN GERMANY 160 CANADA 320 240 160 1970 1971 1972 August 1 , 1973 H. 13 No. 621 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium 6.0 J u l y 5 . 1973 8.5 J u l y 5 , 1973 7.5 Nov. 30. 1972 7.0 June 1 , 1973 6.0 May 3 , 1973 4.0 A p r . 10, 1972 4.5 O c t . 14. 1972 6.0 J u l y 18. 1973 5.0 June 28. 1973 11.50 J u l y 27, 1973 9.00 J u l y 20. 1973 4.5 J a n . 1 , 1973 3.75 S e p t . 15, 197: 6.25 June 10, 1973 5.75 May 14, 1973 6.0 J u l y 2 . 1973 5.5 May 30. 1973 7.0 J u l y 1 , 1973 6.5 June 8 , 1973 France Germany Italy Netherlands **United Kingdom Switzerland Canada Japan United States 5.5 May 10. 1973 * * E f f e c t i v e October 13, 1972, t h e Bank o f England r e p l a c e d i t s t r a d i t i o n a l Bank Rate w i t h a f l u c t u a t i n g "minimum l e n d i n g r a t e " based on average Treasury b i l l tender r a t e . H.13 IV-2 August 1, 1973 No. 621 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower IB Upper 2B Upper German mark Swiss franc U.K. pound Dutch guilder . Canadian dollar French franc 3A German mark U.S. dollar Swiss franc French franc 3B 4 5A Upper Middle Lower 5B z / J u l y 27 Belgian franc Italian lire Canadian dollar German mark Dutch guilder Lower 2A Date Upper Lower - Rate +36.95 11 -3.50 +26.32 +15.99 it •i +27.25 40.03 +8.10 " +40.15 +26.41 " " +2.08 ii +6.54 -1.95 +2.24 +2.60 " it 11 " +2.62 H +5.08 " +3.86 +5.96 +4.79 11 " Gold price, U.S. dollar per ounce II Overnight Euro-S deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U.K., 2-day Local Author. Deps. Canada? Day-to-day Loans France, Day-to-Day Money Germany, Call Money Netherlands. Call Money J u l y 25 10.27 » 10.58 -0.31 •I it " 118.73 15.15 3.50 J u l y 21 J u l y 20 7.25 8.12 J u l y 27 J u l y 28 J u l y 27 5.10 8.38 15.50 J u l y 20 6.00 H.13 August 1, 1973 No. 621 IV-3 Chart 6A - 66 7A Series Panel Upper ! Date Euro-$ Overnight Rate J u l y 27 11.12 Euro-$ 1-month Rate it 11.75 Euro-$ 3-month Rate ii Euro-$ 6-month Rate „ Euro-$ 3-month Deposits 78 Upper 11.06 „ +n o f, „ Differential Euro-$ 3-month Deposits U.S. Certificate of Deposits (Adj.) Upper Euro-) 3-month Deposits 10.26 II J u l y 13 „ 40.80 9.88 6.66 Lower Differential Upper Euro-) 3-month Deposits II Local Authority Deposits (covered) II 6.38 Differential II -3.50 Lower 9A U.S. Treasury Bill rate U.K. Treasury Bill rate Local Authority Deposit (uncovered) 9B „ +1.76 S t e r l i n g CD's (covered) 8B 11.06 12.02 Differential: on Adj. Euro-$ Deposits on Unadj. Euro-$ Deposits 8A 10.10 II „ Euro-$ 3-month Deposits (Adj.) Lower 11.19 11.50 J u l y 25 U.S. Certificate of Deposits Lower Rate Upper Spread (+= favor London) 3-month Forward Pound Lower Net Incentive (+= favor London) -1,9? J u l y 27 9 6.66 8.15 :10.74 f " guly 20 9.00 J u l y 27 +2.59 M -3.55 " -0.96 H.13 August 1, 1973 No. 621 IV-4 Chart Panel 10A Upper Series Euro-$ Deposits (covered) Date J u l y 25 8.45 H 14.25 „ .. +5.80 M -1.08 German Interbank Loan rate Lower 10B --—Upper Differential Euro-* Deposits (covered) Swiss Deposit rate Lower 11 Upper J u l y 27 7.50 U.S. Treasury Bill rate ii 8.15 Canadian Treasury Bill rate •I 5.59 U.S. Prime Finance paper (not plotted) Second 12A 6.58 •vsn Differential Canadian Finance Paper Rate 8.13 Bill rate differential II -2.56 Forward Canadian dollar ii +2.48 Third Net incentive on bills „ Bottom Net incentive on Finance Paper „ Upper U.K. Treasury Bill rate „ U.S. Treasury Bill rate „ „ German Interbank Loan rate Lower Japanese Average rate Canadian Treasury Bill rate 12B -0.08 +1.85 10.74 8.15 14.25 Hay 6.888 J u l y 27 5.59 U.S. Treasury Bill rate „ Euro-) Deposits II 11.19 Swiss 3-month Deposit rate II 3.50 U.S. Treasury Bill rate " 8.15 8.15 % 0 H.13 August 1, 1973 No. 621 IV-5 Chart Panel Series 13 Upper Netherlands J u l y 20 7.79 Canada J u l y 18 7.71 United States J u l y 27 7.35p Date Switzerland Germany Middle ^United Kingdom U.S. Corp. Dollar Euro-bonds. Lower U.S. Corp. DM Euro-bonds S e r i e g G July 6 5.37 J u l y 23 9.98 J u l v 20 10,90 April 8.02 April 6.86 U.S. Corp. Aaa bonds 14 Switzerland Upper Germany United States United Kingdom Middle Canada Lower ** Japan United States Rate 7.37 J u l y 27 359.9 J u l y 13 282.0 J u l y 20 242.10 J u l v 27 232.70 J u l v 19 288.78 J u l v 14 866.27 J u l y 20 242.10 *New - - Average y i e l d on s e l e c t e d 10 year constant, i n a t u r i t y bonds due o r c a l l a b l e i n ** Beginning week ended Septe; ber 5, 1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange.
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