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SELECTED INTEREST &
EXCHANGE RATES
FOR MAJOR COUNTRIES &
THE US.
WEEKLY SERIES OF CHARTS
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
1
TABLE OF CONTENTS
PART I. EXCHANGE RATES AND GOLD PRICES
Chart 1A and I B - Spot Exchange Rates, Major Currencies against U.S. Dollar
Chart 2
- 3-Month Forward Exchange Rates, Major Currencies against
U.S. Dollar
Chart 3
- 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 6
- London: Euro-$ Deposit Rates
Chart 7
- New York - London: Yields on U.S. Dollar Funds
Chart 8
- London: Covered Yields on U.S. Dollar Funds
Chart 9A and 9B - Interest Arbitrage: United States-United Kingdom
Chart 10
- Interest Arbitrage: U.S.-Germany and U.S.-SwItzerland
Chart 11
- Interest Arbitrage: United States-Canada
Chart 12
- 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. LATEST FIGURES PLOTTED ON THE CHARTS
NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD,
which has been published under that title through December 31, 1968.
The changes in the format and order of the charts are fully explained In the Supplement
to the series, which accompanied issue dated January 1, 1969.
fiL/r? i/n/ne d {
JJ//j T1*IS
3
C h a r t 1A
SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR
J
Week ly averages
^er
cent
Above par
1.6
| SWISS FRANC
4> GERMAN MARK
with
U.S.
U.K. POUND
Below par
Above par
DUTCH GUILDER
FRENCH FRANC
JAPANESE YEN
|
S
M
1966
D
M
1967
* D e v a l u a t i o n of the U.K. p o u n d f r o m $ 2 . 8 0 to $ 2 . 4 0 .
D
S
1968
S
1969
Below par
D
Chart I B
SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR
W e e k l y averages
Percent
Above par
1.2
BELGIAN FRANC J.
U.S.
ITALIAN LIRA
CANADIAN DOLLAR
1.2
:
M
J
S
D
1966
M
S
1967
D
M
J
1968
S
D
M
J
1969
S
| Below par
D
5
3-MONTH FORWARD EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLARS
Per c e n t per a n n u m
PREMIUM*
Friday figures
GERMAN MARK|
SWISS FRANC
U.K. POUND
| DISCOUNT-
'
PREMIUM*
|
I
I DUTCH GUILDER
CANADIAN DOLLAR
| FRENCH FRANC
I
1966
1967
DISCOUNT—
1968
1969
lo
Chart 3
3-MONTH FORWARD EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.K. POUND
Per c e n t per a n n u m
Friday figures
GERMAN MARK
U.S. DOLLAR
L
!
DISCOUNT-
|
PREMIUM*
12
j
SWISS FRANC
FRENCH FRANC
M
S
M
1966
1967
M
1968
J
1969
S
D
1
GOLD PRICE IN LONDON, 12.5 Kg BARS
W e e k ' s a v e r a g e of a f t e r n o o n fixings
U.S. d o l l a r e q u i v a l e n t per fine o u n c e
45.0
43.0
• M a r k e t closed March 15-April 1, 1 9 6 8
CHART 5
CALL MONEY RATES
DOLLAR FUNDS
Per c e n t per a n n u m
Weekly averages
CALL EURO DOLLAR DEPOS
POSITS JFY
FEDERAL FUNDS
I
ml JlA
1
¥
U
JU
W
\ r
1 !
1 1
! I
\.A
If
1 1 1 ! I
AA/V
,
1AA
E:URO- DOLLAR OVEFT FEDERAL FLJNDS
!
1 1
1/
» f1
1 ! i 1
1
1 1!
1 1 i ! ! ' 1 M
1 1 1 I
1
1 !
I I
FOREIGN CURRENCIES *
Frid ay's f i g u r e s
! !
I
1
1
j
i
1
I
!
!
i
:
1
:
'
I
i
:
J/(PAN
°
u/
|
i-
|
:
FFtANCEj
:
I
A / h ir
i
GE:RMANY \ j V
i
! 1
M
1 1
J
l l i l l
S
M
D
M
1966
i
S
1967
|
|
!
l
J
/ :
1 1
D
M
M i l l
J
S
1968
M i l l
D
M
J
1969
* Germany, Call Money; U.K., 2-day Local Athority Deposits; Japan, U n c o n d i t i o n a l Money; France, Day-to-day Money.
1 1
S
J
1 1
2
CHART 6
LONDON: EURO DOLLAR DEPOSIT RATES
Friday f i g u r e s
Per cent per
10
9
8
1-MONTH
7
6
! CALL
5
4
3
10
I
9
•
8
i
3-MONTH I
7
I
1
6 MONTH ^
J
6
"
:
|
.
|
•
V
5
i
!
1 1
M
'
J
S
4
1
!
D
1966
•
M
.
•
3
:
J
1967
S
D
M
J
1968
S
D
M
J
1969
S
D
NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS
3-MONTH DOLLAR DEPOSIT RATES -SECONDARY MARKET
Per cent per a n n u m
Wednesday figures
9
EURO-DOLLAR DEPOSIT
U.S. CERTIFICATE OF DEPOSIT
1
1
!
L
'
!
i
1
|
i
1
.
!
!
1
1
EURO DOLLAR OVER U.S. <CERTIFICATE OF DEPOSIT
r
.
3-MONTH DOLLAR DEPOSIT RATES -PRIMARY MARKET
Wednesday figures
EURO DOLLAR DEPOSIT
U.S. CERTIFICATE OF DEPOSIT
ADJUSTED
EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT
ADJUSTED
1966
* Adjusted for Reserve R e q u i r e m e n t
r
i
II
CHART 8
v
,
LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS
HIRE PURCHASE AND EURO DOLLAR RATES
Friday f i g u r e s
Per cent per a n n u m
EURO-DOLLAR DEPOSIT
HIRE PURCHASE
COVERED
FAVOR HIRE PURCHASE
+
DIFFERENTIAL
FAVOR EURO-DOLLAR
LOCAL AUTHORITY AND EURO-DOLLAR RATES
Friday figures
Per cent per a n n u m
EURO-DOLLAR DEPOSIT
LOCAL AUTHORITY DEPOSIT;
COVERED
i
+
FAVOR LOCAL AUTHORITY
DIFFERENTIAL
M
J
i
S
D
1966
J
1967
S
D
M
J
1968
S
D
FAVOR EURO-DOLLAR
M
J
1969
S
D
INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM
Friday's Figures
Per cent per a n n u m
10
3-MONTH
TREASURY BILL RATES
I
!
!
I
U.K. LOCAL AUTHORITY DEPOSITS*
UNCOVERED
6
l _ j j
P l o t t e d f o r c o m p a r i s o n purposes.
2
Chart 9 8
INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM
Friday figures
Per cent per a n n u m
RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING
SPREAD IN FAVOR OF LONDON
DISCOUNT
Y \
FORWARD RATE
J
1
!
IN FAVOR OF LONDON
,N FAVOR OF NEW YORK
f
™
T
T
"
J
RATE: DIFFERENTIAL Wlll"H FORWARD EXCHANGE:s COVER (NET INCENTIVE)|
1
1 1 1
M
J
'
S
D
1966
M
J
1967
S
D
M
j
S
1968
D
M
J
S
1969
D
Chart 10
INTEREST ARBITRAGE: U.S. - GERMANY AND U.S. - SWITZERLAND
FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE
W e d n e s d a y rates
Per cent per a n n u m
8
:
:
K
1
-4-
!
1
'
i
:
.
•
INTERBANK LOAN RATE
GERMAN
_
%
T
:
i
1
IN TERMS OF DM
i
1
EURO-DOLLAR
!
!
COVERED
:
FAVOR FRANKFURT
__ DIFFERENTIAL
L
i
:
FAVOR EURO DOLLAR
ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE
Per cent per a n n u m
Wednesday rates
8
IN TERMS OF SWISS FRANCS
EURODOLLAR
COVERED
SWISS DEPOSIT RATE
!
DIFFERENTIAL
FAVOR EURO-DOLLAR
1
1A
A
"Wl
P
I
i
i
M
!
:
:
J
FAVOR ZURICH
I
i
S
D
1966
M
J
1967
S
D
M
J
1968
S
D
M
J
1969
S
D
CHART 11
INTEREST ARBITAGE: UNITED STATES-CANADA
Friday f i g u r e s
Per cent per a n n u m
CAN. FIN. CO. PAPER
UNITED STATES TREASURY BILLS
CANADIAN TREASURY BILLS
R
J
BILL. RATE DIFFERENT!/!iL AND FORWARD CANADI AN DOLLAR
1
GROSS SPREAD IN1 FAVOR OF CANADA
7
PREMIUM
.. .yL ^
A
^
-
r
Y
U
FORWARD RATE
i
DISCOUNT
3-MONTH COVERED RA1rE DIFFERENTIALS
FAVOR CANADA
NET INCENTIVES
TREASURY BILLS
/ !
:
K
V " '
i
FAVOR U.S.
i
;
1
!
FAVOR CANADA
!
PRIME FINANCE PAPER
r
v
W
\
J
S
A
.
.
P
|
M
J
S
D
M
1966
J
S
1967
D
M
'
J
S
1968
FAVOR U.S.
•
D
M
i'"-
J
1
S
1969
i
i
D
SELECTED SHORT-TERM INTEREST RATES*
Per cent per a m
9
EURO-DOLLAR - LONDON
8
1I
7
6
5
4
3
SWITZERLAND
2
9
8
7
CANADA
6
5
4
GERMANY
1965
1966
1967
3
1968
-month t r e a s u r y bill rates for all countries except Japan (Average rate on bank loans and d i s c o u n t s )
Switzerland (3-month d e p o s i t rate) and Germany (Interbank Loan Rate)
6
3 - m o n t h rate for U.S. dollar d e p o s i t s in London.
1969
i
II
C h a r t 13
LONG-TERM BOND YIELDS
Weekly figures
Per c e n t per a n n u m
NETHERLANDS i
CANADA
U.S.
SWITZERLAND
10
GERMANY
U.K.
EURO-DOLLAR BONDS
Monthly figures
U.S. CORP. DOLLAR EURO-BONDS
U.S. CORP. DM EURO-BONDS
U.S. CORP. Aaa BONDS
I
1965
1966
*
New series for Switzerland s t a r t s 3-3-67.
* * New series for S w i t z e r l a n d s t a r t s 8-2-68.
i
1967
1968
1969
CHART 14
INDUSTRIAL STOCK INDICES
420
360
320
SWITZERLAND
280
GERMANY
240
U.S.
200
160
360
320
U.K.
280
240
200
CANADA
160
T
380
320
280
JAPAN
240
U.S.
200
160
1966
*
1967
1968
Swiss Bank Corporation industrial stock index.
* * Japan index of 225 i n d u s t r i a l and o t h e r stocks traded on the Tokyo exchange.
1969
\1
H. 13
No. 389
IV. LATEST FIGURES PLOTTED ON THE CHARTS
Chart
Panel
1A
Upper
Series
Swiss franc
Date
Rate
Feb. 7
+1.19
German mark
Lower
U.K. pound
Dutch guilder
French franc
Japanese yen
Upper
Lower
Upper
Lower
4
5
-0.40
-0.04
"
"
-0.35
"
40.59
"
+n.f)3
-0.18
Italian lira
Canadian dollar
3
-0.30
"
Belgian franc
IB
2
"
"
+0.77
German mark
„
Swiss franc
"
U.K. pound
Dutch guilder
Canadian dollar
French franc
"
+1.81
-2.61
+1.68
40.15
"
-5.15
M
+6.88
"
+2.23
+3.76
"
+2.32
Gold price, U.S. dollar per ounce
"
42.56
Call Euro-$ deposits
Middle
Federal Funds
Differential
Japanese Unconditional Money
"
"
German mark
U.S. dollar
Swiss franc
French franc
Upper
Lower
44.35
German Call Money
U.K. 2-day Local Authority Deposits
French Day-to-day Money
Feb. 5
"
"
Feb. 7
ii
7.30
6.32
+0.98
7.30
3.44
Jan. 31
7.19
Feb. 7
7.75
IV- 2
Chart
Panel
Series
6
Upper
Euro-$ Call Rate
Lower
7
Upper
Second
8
9B
10
7.68
"
7.81
Euro-$ 6-month Rate
"
7.88
Ifeb.
U.S. Certificate of Deposits
"
Differential
Euro-$ 3-month Deposits
U.S. Certificate of Deposits (Adj.)
"
Upper
Euro-$ 3-month Deposits
Hire Purchase Deposits (covered)
Second
Differential
Third
Euro-$ 3-month Deposits
"
7.75
5.64
"
+2.11
Jan. 31
Local Authority Deposits (covered)
"
Differential
"
n.a.
"
Feb.
6.15
6.60
"
n.a.
if
"
Lower
Euro-$ Deposits (covered)
German Interbank Loan rate
~~~~ Differential
Euro-$ Deposits (covered)
7
"
Spread (+ = favor London)
Fourth
n.a.
n.a.
3-month Forward Pound
Net Incentive (+ = favor London)
Second
7.75
6.52
+1.23
"
Upper
Third
5
n.a.
n. a.
n.a.
U.S. Treasury Bill rate
U.K. Treasury Bill rate
Local Authority Deposit (uncovered)
Upper
7.75
Euro-$ 3-month Rate
Differential
9A
7
"
Fourth
Fourth
Feb.
Euro-) 1-month Rate
Euro-$ 3-month Deposits
Third
Rate
Date
40.45
-2.61
-2.16
"
Feb.
5
"
3.45
3.88
"
+0.43
"
5.94
Swiss Deposit rate
"
n. a .
Differential
"
n.a.
IV-3
Chart
Panel
Series
11
Upper
Canadian Finance Paper
Rate
Date
Feb.
7
6.62
U.S. Treasury Bill rate
6.15
Canadian Treasury Bill rate
6.08
+0.35
U.S. Prime Finance paper
(not plotted)
Middle
Bill rate differential
-0.07
40.04
-0.03
Forward Canadian dollar
Lower
12
Upper
Net incentive on bills
Net incentive on Finance Paper
40.35
Euro-$ Deposits
U.K. Treasury Bill rate
7.81
6.60
6.15
U.S. Treasury Bill rate
Swiss 3-month Deposit rate
Lower
Japanese Average rate
Canadian Treasury Bill rate
U.S. Treasury Bill rate
n. a.
7.38
6.08
Dec. 31
Feb.
7
6.15
3.88
German Interbank Loan rate
13
Upper
Middle
Netherlands
Canada
United States
Switzerland
Germany
United Kingdom
Euro-dollar bonds
Lower
U.S. Corp. Dollar Euro-bonds
U.S. Corp. DM Euro-bonds
U.S. Corp. Aaa bonds
Jan. 31
Feb.
5
Jan. 31
6.83
7.36
5.92
4.38
Feb.
Feb.
6.19
n.a.
"
7
6
Feb.
7
Jan. 31
.
"
7.51
n. a.
n.a.
"
n. a .
f -
IV-4
Chart
Panel
Series
14
Upper
Switzerland
Germany
Feb.
7
Jan. 31
403.1
272.4
United States
Feb.
7
227. 5
279.5
Canada
J a n . 30
233.5
United States
Feb.
227.5
Rate
Date
United Kingdom
Lower
Japan
320.9
"
7
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