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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS BOWOOF GOVERNORS OF THE FBjERAL RESERVE SYSTEM TABLE OP CONTENTS PARTI. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - Spot Exchange Rales, Major Currencies against US. Dollar Chart 2A and B - 3 Month Forward Exchange Rales, Major Currencies against U.S. Dollar Chart 3A md 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 6 - London: Euro-S Deposit Rates Chart 7A and B -New York- London: Yields on U.S. Dollar Funds Chart BAandB - London: Cowered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B- Interest Arbitrage: U.S.-Geneany and U.S.-Switztrland Chart 11 - Interest Arbitrage: United States-Canada Chart 12A 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, erfilch was published under that title through December 31,1%S. The changes in the format and order of # * charts are explained in #w Supplement to # * series, which accompanied Issue dated January 1,1%#. All series and their sources are fully described In a ^implement dated January 1,1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR Weekly averages Ab Central rate against US- GERMAN MARK j fsmss FRANC 1 JU.K. POUND 9 I I 1 I I 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ^ aJ / /DUTCH GUILDER rate against U.S. FRENCH FRANC j j JAPENESE YEN 1 1 1 1 ! 1 1972 1 1 1 1 1 1 1 1 1 1 1 1 j 1973 1 1 s 1 1 Be |'' \<p Chart I B SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Above 2 f BELGIAN FRANC Central rate —| agamst ! us ' ITALIAN URA J I I I I I I I I I I I I I J I 1972 I I I I I L 1973 Ratio scale, U S cents 102 CANADIAN DOLLAR / A _v V r 100 V t T 98 96 V 94 i i i i i 1 1 1 1 1 1 M J S 1970 D i i 1 i i 1 i i 1 i i M J 1971 S i i l i : M I i i D 1972 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR May 11, 1971 - Weekly averages P*f cent Above GERMANY NETHERLANDS FRANCE JAPAN Par U.S. dollar MAY JUNE JULY SEPT. AUG. 1971 * Financial franc OCT. NOV. DEC. •51 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR 11. 1971- ux swrrz. ITALY Par us MAY JUNE JULY AUG. SEPT 1971 *For clarity the vertical scale is #awWe that used in 1C OCT. NOV. DEC. ' Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U S. DOLLAR Per cent per Weekly averages PREMIUM* GERMAN MARK SWISS FRANC U.K. POUND DISCOUNT 1968 * No quotation. 1971 1970 1969 4-MONTH FORWARD YEN AGAINST U S. DOLLAR - - ft JIAPAN :SE Yl m - r V - - t! V\ PREMIIUM+ 1 11 11 1 1 j S 1970 - 1 l 11 0 M i i i i J 1971 S •i i Chart 2B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.S. DOLLAR Per cent per annum Weekly averages Vv-^f ^ FRENCH FRANC M J S 0 19M •Devaluation of the French franc • Can. $ rat* not supported by * No quotation 4 94 * * * * * * * $100 Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum 24 PREMIUM* 20 12 GERMAN MARK U S. DOLLAR DISCOUNT— M J S D 1968 * Np quotation M J 1969 S D M J 1970 S D M J 1971 S D Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM* FRANC FRENCH FRANC M J l#w S D M J $ IMS * Devaluation ef the French franc frwn 4 . M to S.SS fer $1.00 0 • J 1970 $ 0 M J tin $ 0 Chart 4 I GOLD PRICE IN LONDON. 12.5 Kg BARS Week's average of afternoon fixings - - U S dollar equivalent per fine - ' j 111111II1iI1i11i I 1 - / - 1 A,M V /v r - ) A •v' 1 m j s d m 1969 j s 1970 d m j 1971 s d II m 11 j II s 1972 II o CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Pe* ier? per a^n n i 1 r EURO-DOLLAR DEPOSITS CALL OVERNIGHT 16 12 FEDERAL FUNDS J\ 1 1 EURO•-DOLLAR OVER FEDERAL FUNDS 1 - v ' V ' W f vvv 1 1 1 ! 1 1 1 1 1 II vv lA/ 1 11111! 11 11 w - : J lUv 1 1 I 1 1 1 111 1 1 1 1 1 1 1 1 1 i I ! 1 EURO-CURRENCIES Weekly averages Pet cent per annum 12 EURO-SWISS FRANC I I I I I I I I I I I I I I I I I I F May 10. 1971 - Changed to Overnight Euro $ Deposits "fill:! 0 )V> Chart 5B CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 NETHERLANDS I I 1 I 1 I I I I I I 1 I I I I I I I I I I I ^ JAPAN - '"A i i 1 ii 1 i i 1 i i i i 1 i i 1 i i 1 i i CANADA i i 1 I I 1 i i 1 i l i i 1 i i 1 i i 1 i i i I i i I i i I i i 1969 France, Day-to-day Money; Netherlands. Call Money, weekly average. Japan, Unconditional Money; Canada. Day-to-day Loans, weekly average; Germany. Call Money;U.K., 2 day Local Authority Deposits. y.1 Chart 6A LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Per cent per annum 12 10 6 4 2 1969 1970 • M a y 12/71—changed to Overnight Euro-OoNar Deposits * * J u l y 1-changed to 7 Day Euro-Dollar 1971 1972 I fft> Chart 6B LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Per cent per annum 12 AkA JW / i A \^ 10 v v / / it thJ h l/v 8 1 V\\J[Z#QKTH ' 6 1 4 1 1 1 II M 1 II J 11111111111 1 II S D 1969 M J 1970 S D 1 1[ 11111111 M J S 1971 D l l 1 II M J 1111M S 1972 D 2 V* Chart 7A NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures - Per cent per annum l j y EURO DOLLAR DEPOSIT i ( J I \ - I US. CI•RTIFICATE OF DEPOSIT i i 1i i 1i i 1i i i i 1i i 1i i 1i i . 1 1111 111111 1 11 1 I 1 II DIFFERENTIAL FAVOR EURO DOLLAR - 4 A " AA/4 r 1 1 1i wvx/ i \ j ElIRO DOLLAR OVER U.S. CIERTIFICATE OF DEPOSIT l I 1 II M 1 II J 1 I I S l I 1 I l 1 l l 1 I l D 1969 M J 1970 S D I I 1 l I 1 i I 1 i i —LJ.1-LJ M J S 1971 D M J 1 1 I 1 1 i | S 1972 D 0 NEW YORK-LONDON: COST OF U.S. DOLLAR FUNDS 3-month dollar Wednesday figures deposit rates-primary market Per cent per annum k EURO DOLLAR DEPOSIT ADJUSTED EURO DOLLAR D E P O S I T U S. CE R T I F I C A T E O F D E P O S I T ADJUSTED I I 1 I I 1 I I 1 I I I I I I I I I I I I I EURO DOLLAR OVER U.S. C E R T I F I C A T E OF D E P O S I T ADJUSTED* M J S D M 1969 J S 1970 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * *Adjusted for 20% Marginal Reserve Requirement D M J S 1971 D M J 1972 S D \1I Chart 8A LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS hire purchase and euro dollar Friday figures rates Per cent per a n n u ^ EURO DOLLAR DEPOSIT HIRE PURCHASE COVERED FAVOR HIRE PURCHASE FAVOR EURO DOLLAR differential M J S D 1969 M J 1970 S D M J 1971 S D M J 1972 S D + V* Chart 86 LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS local authority and euro dollar Friday figures rates Per cent per annum EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT "COVERED FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR differential 1969 1970 1971 1972 + INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per 3-MONTH TREASURY BILL RATES M J S D M 1969 * Plotted for comparison purposes J S 1970 D M J S 1971 D I I J S 1972 O i ri Chart 98 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum PREMIUM] r a t e d i f f e r e n t i a l and 3-month f o r w a r d sterling i SPREAD IN FAVOR OF LONDON FORWARD RATE • • DISCOUNT 4 FAVOR LONDON differential FAVOR NEW YORK M J S D 1969 M J 1970 S D M J 1971 s D M J 1972 S 0 r?/ Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF DM GERMAN INTERBANK LOAN RATE EURO-DOLLAR COVERED DIFFERENTIAL FAVOR FRANKFURT FAVOR EURODOLLAR M J S 0 1969 No quotation M J 1970 s 0 M J 1971 s 0 M J 1972 S 0 Chart 10B 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC z u r i c h d e p o s i t r a t e vs. l o n d o n e u r o d o l l a r r a t e Wednesday rates Per cent per annum in t e r m s o f swiss f r a n c s EURODOLLAR COVERED SWISS DEPOSIT RATE FAMM2UMCM differential FAVOR EURO-DOLLAR M J S D 1969 No quotation M J 1970 S D M J 1971 S D M J 1972 S D 2 Chart 11 3-MONTH INTEREST ARBITRAGE UNITED STATES - CANADA Friday figures p»r c w t per j - b i l l rates .CAN. FIN. CO. PAPER UNITED STATES TREASURY BILLS CANADIAN TREASURY b i l l r a t e d i f f e r e n t i a l a n d f o r w a r d canadian d o l l a r FORWARD RATE GROSS SPREAD IN FAVOR OF DISCOUNT covered rate differentials FAVOR CANADA FAVOR U S. FAVOR CANADA PRIME FINANCE PAPER M J S D 1969 M J 1971 s 0 M J 1970 s 0 M J 1972 s 0 SELECTED SHORT-TERM INTEREST RATES* Per cent per annum . r ~ \ r O - - 6EMIAMY V LWjX -Xv>^x y y 13. 11111111 11 1 1 1 I I 1 I I 11 1 1 1 1 1 1 1 1 1 1 1 1 - - i r\ 1 1 i n 1 1 1 1 1 1 1 1 V\ i 1 i i 1 i i 1 i i - J# PAN Vi - '\r \\u's. /\ \//\ v CAMADA\ f 1111 111 11 i i II111111111 1968 1 t 1 i 1 1 1 1 1 M1 11 1 1 1 1 1 1 i i 1 1 1 1 1 1 1 1 1 1 1 1 1970 *3-month treeswry M l rates for mW towNiies except Japan(Avera«e rate on bank loans and discounts) and GermenyOnterfeank Loan Rate) 1972 Chart 12B SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO DOLLAR - LONDON US. SWITZERLAND [ 1968 1970 * 3-month treasury bill rate for U.S., Switzerland-3-month deposit rate. * * 3-month rate for U.S. dollar deposits in London. 1972 Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per annum NETHERLANDS CANADA u.s. US. SWITZERLAND 11 U.K. GERMANY EURO DOLLAR BONOS 10 T U S. CORP. DOLLAR EUROBONDS Monthly figures U S. CORP. Aaa BONDS U.S. CORP. DM EURO-BONDS 1968 1969 1970 1971 1972 * New series for Switzerland starts 8-2-66, U.S. Corp. Dollar Euro-Bonds and U.S. Corp. DM Eurc Bonds starts 12-70. * * New-Average yield of all German P.A. Bonds begins 1-7-69. * * * New series F starts 12 71. HART 14 >8=100 NDUSTRIAL STOCK INDICES oscele 320 f280 200 i I i i I i i I i i i i I i i I i i I i i i i I i i I i i I i i I i I I i I i i I i i 160 /400 320 :» 160 400 320 240 1 i i I i i 1i i 1i i 1i i I i i 1M 1968 1969 1970 1i I 1I I I l l I l l 1971 apan index of 225 industrial and other stocks traded on the Tokyo exchange. Japan index of all industrial and other stocks traded on the first section of the Tokyo Stock Exchange. 160 H. 13 No. 542 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium France Germany Italy 5. 0 Jan. 6, 1972 5.50 Sppt. 23. 1971 6.0 Jan. 13. 1972 6.50 Oct. 29. 1971 4.0 Dec. 23. 1971 4.5 not- Ipr. S, 1071 1A, 1071 4.5 Oct. 14. 1971 s.n 4.5 Jan. 6, 1972 5.0 lent.15. 1971 Switzerland 3.75 Sept. 15, 1969 3.0 Fulv 10. 1967 United Kingdom 5.0 Sent. 3 . 1971 6.0 Anr. 1. 1971 Canada 4.75 Oct. 25, 1971 5.25 Feb. 24. 1971 Japan 4.75 Dec. 29, 1971 5.25 Julv 28. 1971 United States 4.50 Dec. 13, 1971 4.75 Nov. 11, 1971 Netherlands Chart 1 C e n t r a l rates against U.S. d o l l a r Canada Actual 99.48 Jan. 7 Swiss Franc -2.076 UK Pound -2.152 France Franc -1.909 Japanese Yen -1.874 Belgian Franc -0.285 Italian Lire -2.139 German Mark -1.438 Dutch Guilder -0.331 Jan. 14 -1.777 -1.982 -1.448 -1.791 +0.625 -1.955 -0.281 +0.543 99.23 Jan. 21 -0.891 -0.926 -0.817 -1.498 +1.351 -1.265 -0.244 +1.361 99.40 Jan. 28 -0.784 -0.548 -0.533 -1.024 +1.705 -1.224 -0.381 +1.558 99.52 j IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower IB Upper Lower 2A 2B Upper Lower 3A 3B 4 5A Upper Middle Lower 56 Upper Lower Belgian franc Date Rate *®ee Data Appen led for Jan. 7, 14, 21 &28 Italian lire Canadian dollar German mark Dutch guilder German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Jan. 28 German mark U.S. dollar Swiss franc French franc Jan. 28 II « +1.38 +0.02 + 3 .6 4 +0.15 Gold price, U.S. dollar per ounce Jan. 28 46.45 Overnight Euro-$ 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 Jan. 26 ii H 3.34 " « " « +0.98 +4.20 +0.08 +0.23 +0.19 * -0.24 n« a* 3.43 -0.09 Jan. 28 4.08 0.62 5.00 4.50 3.65 5.25 5.12 Dec. 17 5.31 Jan. 21 •I Jan. 26 Jan. 21 m IV-3 Chart . Panel &A Euro-$ 7-Day 68 7A 78 Rate Date Series Rate Jan. 28 4.25 Euro-$ 1-month Rate H 4.50 Euro-$ 3-month Rate « 5.12 Euro-S 6-month Rate " 5.56 Upper Euro-) 3-month Deposits U.S. Certificate of Deposits - 3.95 Lower Differential it +0.93 Upper Euro-S 3-month Deposits N Euro-$ 3-month Deposits (Ad#.) " - Lower 4.88 Jan. 26 4.88 6.10 U.S. Certificate of Deposits (Adj.) 4.08 Differential: on Adj. Buro-S Deposits +2.02 on Unadj. Euro-S Deposits 8A Upper Euro-S 3-month Deposits +0.80 5.63 Jen, 14 Hire Purchase Deposits (covered) 88 Lower Differential N +0.27 Upper Euro-S 3-month Deposits H 5.63 Local Authority Deposits (covered) •f 5.84 Differential « +0.21 Lower U.S. Treasury Bill rate 9A U.K. Treasury Bill rate Local Authority Deposit (uncovered) 98 5.90 Upper Spread (+= favor London) 3-month Forward Pound Lower Net Incentive (+= favor London) 3.34 Jan. 28 ti 4.29 Jan. 21 4.53 Jan. 28 +0.95 Jan. 28 -0.06 1 Jan. 28 j +0.89 IV-4 Chart Panel Series 10A Upper Euro-* Deposits (covered) Date Jan. 26 German Interbank Loan rate 10B Lower Differential Upper Euro-S Deposits (covered) U Differential Upper Canadian Finance Paper 5.25 0.74 1.50*. + 0 . 76 Jan. 28 U.S. Treasury Bill rate 3.31 U.S. Prime Finance paper (not plotted) 12A 3.88 3.34 Canadian Treasury Bill rale Second 4.13 +1.12 Swiss Deposit rate Lower Rate 3.75 Bill rate differential -0.03 Forward Canadian dollar +0.20 Third Net incentive on tills +0.17 Bottom Net incentive on Finance Paper +0.33 Upper U.K. Treasury Bill rate Jan. 28 U.S. Treasury Bill rate 3.34 German Interbank Loan rate Lower Japanese Average rate Canadian Treasury Bill rate 12B - 4.29 5.25 November Jan. 28 7.448 3.31 U.S. Treasury Bill rate " Euro-$ Deposits „ Swiss 3-month Deposit rate || 1.50D. " 3.34 U.S. Treasury Bill rate 3.34 5.12 Vtl IV-5 Chart Panel Series 13 Upper Netherlands Dec. 17 Canada Jan. 26 United States •i Switzerland Middle * Germany United Kingdom Euro-dollar bonds Lower U.S. Corp. Dollar Euro-boggj Se *ies U.S. Corp. DM Euro-bonds^ S e r i e s U.S. Corp. Aaa bonds 14 Upper Switzerland Germany United States Middle United Kingdom Canada Lower ** Japan United States E 7.35 6.27 5.57 Jan. 21 Jan. 7 Jan. 14 4.83 7.66 7.60 Jan. 14 8.40 Jan. 26 7.2 7.67 7 84 II c Rate Date Jan. Dec. Dec. Jan. December Jan. 28 n Jan. 28 ?:» 408.9 226.8 231.59 Jan. 28 278.57 Jan. 30 221.90 Jan. 22 470.14 Jan. 28 231.59 * New - Average yield of ALL German Public Authorities bonds made as of banking key days. ** Beginning week ended September 5, 1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange. * * * Series F - based on issues offered i n 1970 or e a r l i e r and i s used for c a l c u l a t i n g yields for December 1970 through December 1972.
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