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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 TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - 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-S 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 12A and B - Selected Short-term Interest Rates x 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, which accompanied issue dated January 1,1969. All series and their sources are fully described in a Supplement dated January 1, 1972. si SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Weekly averages January 1968 August 15. 1971 p . , cent SWISS FRANC 1.6 GERMAN MARK U K. POUND Par US. FRENCH FRANC- JAPANESE YEN US DUTCH GUILDER Below par M J 1968 S D J M - S D 1969 * Devaluation of the French franc from 4.94 to 5.55 for $1.00. * * Rate not supported by Central Bank * * * Revaluation of the DM from 25.00 to 27.32 in U.S. cents. * * * y 10, 1971 - Swiss franc revalued new par 24 485 U S cents M J 1970 S 0 M J 1971 S 0 Chart IB SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Weefcly avaragas January 1968-August 15, 1971 r A y BELGIAN FRANC ITALIAN URA CANADIAN DOLLAR *Rate not supported by Central Bank Ratio «ca4a. | | S . caatt hi? SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR May 11, 1971 - Weekly averages Above par Below par MAY JUNE 1971 Financial franc CMrt ID SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR 11. 1 9 7 1 - U.K. ITALY us. MAY JUNE JULY AUG. SEPT. 1971 •For clarity the vertical scale is double that used in 1C OCT. NOV. DEC i 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U S. DOLLAR Weekly averages " Per cqpt per annum PREMIUM* GERMAN MARK SWISS FRANC U.K. DISCOUNT M J s D 1968 * No <iuotation M J S 0 M 1969 J s D M 1970 I S 1S71 0 4-MONTH FORWARD YEN AGAINST U S. DOLLAR Weekly averages JAPANESE YEN PREMIUM M J 1970 D M J 1971 S D Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.S. DOLLAR Weekly averages Per cent per annum ] PRE)MWM + i t c h g I U I L D ER d Wv A / ^ v T C A NAO! DOHA# K ) J / 0 =v>i FRANC sT* If [I1 1} 1 - • • 1 1 1 M M / S i i 1 1 1 I D M J 1968 I I I S m INT1 1 O 1969 * Devaluation of the French franc from 4.94 to 5.55 for $1.00. * • Can. | rate not supported by Bank of Canada. * * * No quotation M I 1 I J S 1970 l i I i D I " i M i i J 1971 S i : 0 Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum 24 PREMIUM* 20 GERMAN MARK U S. DOLLAR DISCOUNT— M J S D 1968 * No quotation. M J 1969 S D M J 1970 s D M J 1971 S D (,1 Chart 4 * GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine ounce vv Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM* SWISS FRANC FRENCH FRANC \ I DISCOUNT— M J S D 1968 M J S 1969 •Devaluation of the French franc from 4.94 to 5.55 for $1.00 D M 20 J 1970 S D M J 1971 S D CHART5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Percent p*r annum URO-DOLLAR DEPOSITS CALL OVERNIGHT FEDERAL FUNDS EURO DOLLAR OVER FEDERAL FUNDS EURO-CURRENCIES Weekly averages Per cent per annum a EUR0-DM EURODOLLAR " \ ^ EtiIRO-SWfISSFItANC 1 1 M 1 1 1 1 J S O ..1 1 1 U 1968 J S 1969 * May 10, 1971 - Changed to Overnight Euro % Deposits. * * Dropped as of August 18, 1971. ..1 D II M J 1970 ll S ll O II II 11 J 1971 i l l S O Chart 58 CALL MONEY RATES FOREIGN CURRENCIES* Friday figures Per cent per - - f APAN V I I - 1 1 1 1 1 1 1 1 1 1 : 1 (H \f\l d < CA iNADA i i 1 1 i i l l l l V\ 1 1 \ h/V 1 I i Vv 11 1 11 SELECTED EEC CURRENCIES** Friday figures Per cent per annum FRANCE GERMANY M J S 0 1968 M J 1969 S D M J S D M 1970 * Japan, Unconditional Money, U.K., 2-day Local Authority Deposits; Canada, Day-to-day Loans, weekly average. * * Germany, Call Money; France, Day-to-day Money; Netherlands, Call Money, weekly average. J 1971 S 0 Chert 6A LONDON: EURO DOLLAR DEPOSIT RATES 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 I I I I M J S O M 1969 J S 1970 *May 12/71-changed to Overnight Euro-Dollar Deposits * * July 1-changed to 7-Day Euro-Dollar O M i S 1971 D M J S 1972 O LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Per cent per annum . \ J V\ 6-MONTK1 fl v U i 11111 111111 M J S D 1969 M 1 1111 1 1II M J 1970 S D MONTH \i 1 1111111111 M J S 1971 D 1 11 11111111 M J S 1972 D Chart 7A NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Per cent per annum Wednesday figures I - - - EURO DOLLAR DEPOSITr J j\nf 1 r V / u .s ceimFiCATE OF DEPOSIT V * i i I i i 1 i i 1 i i i i 1 i i 1 II 1 i i l\ j/ll 1 11 1 11 1 1 1 1 1 DIFFERENTIAL A/u 1 1 11 1 11 11 J S 1 1 11 H MA r i M " FAVOR EURO DOLLAR - II \ D M M 1968 Al^ I i i l i i 1 i i J 1969 S D 1 1 1 1 1 I ! 1 1 11 M J S 1970 D 1 1 1 1 1 1 M M J S 1971 I 1 1 D ' Chart 7B NEW YORK-LONDON: COSTS 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. CERTIFICATE OF DEPOSIT4 ADJUSTED DIFFERENTIAL ADJUSTED1 FAVOR U.S. CERT OF DEPOSITLj 1J•J_Li_Li-i-LI M J S 1 l-l.l-LlJ.l_l L a j A D M 1968 J 1969 * Adjusted for Reserve Reqivrement * * Adjusted for 10% M a r ^ r a t Reserve Requirement * * * Adjusted for 20<- Marp.nal Reserve Requirement S D M J 1970 S S D 1971 D LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS HIRE PURCHASE AND EURO DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT HIRE PURCHASE COVERED FAVOR HIRE PURCHASE DIFFERENTIAL M J FAVOR EURO DOLLAR S D M 1969 J 1970 S D S 1971 D M S 1972 D + ID Chart 8B LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL AUTHORITY A N D EURO-DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR DIFFERENTIAL 1969 1970 1971 1972 + ll INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 12 I 3-MONTH TREASURY BILL RATES 10 rf rtA, U.K. LOCAL AtiITHOMTY DEPOSITS * UNCOVERED A r^7rf I j \ \/% T S LONDOVsKl V V VNEW YORK 1 1111111111 M J S II 1 1 111 11 1 1 D 1969 Plotted for comparison purposes M J 1970 S D \ 1 1111111111 M 0 J 19/1 1971 S * 1 1111 1111II M J 1972 S 0 Chart 9B INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I 4 PREMIUM | 2 SPREAD IH FAVOR OF LONDON + 0 2 FORWARD RATE 4 6 • 10 DISCOUNT FAVOR LONDON DIFFERENTIAL 12 4 2 + 0 2 4 6 8 FAVOR NEW YORK M J S D 1969 M J 1970 S D M J 1971 s 10 D M J 1972 S D 1> Chart I OA 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 RATE COVERED DIFFERENTIAL FAVOR FRANKFURT FAVOR EURO-OOUAR M J s 0 1969 No quotation M J 1970 S 0 M J 1971 S D M J 1972 S 0 iH' Chart 10B 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per zr.r.u— IN TERMS OF SWISS FRANCS EURODOLLAR COVERED SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL FAVOR EURO-OOUAR M J S D 1969 No quotation M J 1970 S D M J 1971 S D M J 1972 S D Chart 11 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures Per cent per annum - BILL RATES CAN. FIN. CO. PAPER UNITED STATES TREASURY BILLS CANADIAN \ TREASURY BILLS BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR A/VA T AFORWARO RATE k GROSS SPREAD IN FAVOR OF DISCOUNT COVERED RATE DIFFERENTIALS FAVOR CANADA : FMANCE PAPER M J S D 1969 M J 1971 S D M J 1970 S D M J 1»72 s 0 17 SELECTED SHORT-TERM INTEREST RATES' Per cent per annum j - 1 Vi VVuw. ERMANY I G UK. U I.S. [U - Al | - 111111111111111111111111 1 1 1 1 1 1 1 i1n1 11111111 111111II111 1 1 - - J4FAN V \ — - s. Ax canada\ Va - 11111111111 111111111 i i 1968 1 1 1 1 1 1 1 11 11 11 11 11 I I 1111 1 1 1 1 1 1 1 1 1 1970 * 3 - m o n t h treasury bill rates for all countries except Japan(Aver*ge rate on bank loans and discounts) and Germany!Interbank Loan Rate) - 1972 1% SELECTED SHORT-TERM INTEREST RATES Per cent per annum EURO-DOLLAR - LONDON I i i i i i 1 i i I i i I i i 1 i i 1 i i 1 i i I I i I i i I I I I I I I I I I I 1 1 I I I I I I I I I I I I I I I 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 0 | 71 Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per 10 NETHERLANDS 8 6 SWITZERLAND 4 11 tut. • .GERMANY EURO DOLLAR BONDS 7 5 10 1 U.S. CORP. DOLLAR EURO-BONOS Monthly figures 8 U.S. CORP. Aaa BONDS US. CORP. DM EURO-BONDS 6 4 -L 1968 1969 1970 1971 1972 lew series for Switzerland starts 8-2-68, U.S. Corp. Dollar Euro Bonds and U S Corp. DM Euro-Bonds starts 12 70 New Average yield of all German P A Bonds begins 1 7 69 CHART 14 1958=100 INDUSTRIAL STOCK INDICES Ratio scale 320 | 280 AJ 200 i 1 i i n i i i I 1u l I 1M ! 1 I 11111111 1I I 1I I A ^ W " - 1 1 111 111 111 - A 400 SWITZERLAND 320 ^-w\GERMANY /V, V , 240 Xyv\u.s. 1 1 ! II 1 11 1i ! ii 1i i 1i i 1i i 1 1 1i W i - 1111 i i I ii JAPAN * r ! i i I i i U/ 400 f S 320 - 240 ^VyCANADA i • i ! i 1: i ! : i 1968 i i 1 II 1 i i 1 i i 1969 1 1111111111 1970 i i 1i i 1 i i 1II 1971 * japan 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. ' H. 13 No. 538 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium 5.5 Sept. 23, 1971 6.0 Mar. 25, 1971 France 6.50 Oct. 29, 1971 6. 75 Hay 4.5 Oct. 14, 1971 Germany 4.0 Dec. 23, 1971 Italy 4.5 Oct. 14, 1971 Netherlands 4.5 Jan. 6, 1972 Switzerland 3. 75 13, 1971 5.0 Apr. 5.0 Sept. 15, 1971 Sept. 15, 1969 3.0 J u l y 10, 1967 6.0 Apr. 5 , 1971 United Kingdom 5.0 Sept. Canada 4.75 Oct. 25, 1971 5.25 Feb. 24, 1971 Japan 4 75 Dec. 29, 1971 5.25 J u l y 28, 1971 United States 4.50 Dec. 13, 1971 4. 75 Nov. 11, 1971 3, 1971 1, 1971 IV 2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower Lower Belgian franc Italian lire Canadian dollar German mark Dutch guilder Upper German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Upper IB 2A 2B Lower 3A 3B 4 Upper 5A Middle Lower 56 Upper Lower | I 1 Rate Date i TEMPORARILY SUSPENDED +1.90 +4.26 +1.45 +0.51 +O.M +0 17 n. a. German mark U.S. dollar Swiss franc French franc Jan. 7 Gold price, U.S. dollar per ounce Jan. 7 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 Jan " " " +0.96 -1.40 +2. 77 -0.58 44.80 5 6.01 3.57 7 1 Jam 7 Dec. 11 Jan. 5 7 « Dec. 17 1.62 3.59 5.00 LL 2.38 0.61 5.00 4.12 3.75 5.38 3.50 5. 33 IV-3 Chart Panel - 6A Date Series Euro-) 7 Day Rate Jan, 7 Euro-S 1-month Rate 6B 7A 78 Upper Euro-$ 3-month Rate „ 5.62 Euro-$ 6-month Rate || 5.81 Euro-J 3-month Deposits Jan. 5 5.62 Lower Differential ii +1.47 Upper Euro-* 3-month Deposits i« 5.62 Euro-S 3-month Deposits (At#.) || 7.02 U.S. Certificate of Deposits (Adj.) " 4.34 Differential: on Adj. Euro-S Deposits ii Upper Euro-S 3-month Deposits 4.15 +2.68 +1.28 " Dec. 24 Hire Purchase Deposits (covered) " 6.31 3.34 Lower Differential I -2.97 Upper Euro-S 3-month Deposits ii 6.31 Local Authority Deposits (covered) n 3.40 Lower Differential " U.S. Treasury Bill rate 9A U.K. Treasury Bill rate 96 S-62 " on Unadj. Euro-S Deposits 8B 5.12 " U.S. Certificate of Deposits Lower 8A Rate Upper " Local Authority Deposit (uncovered) Dec. 31 Spread (+= favor London) Jan. 7 3-month Forward Pound Lower Jan. 7 Net Incentive (+= favor London) -2.91 3.45 4.32 4.69 +0.87 ii +0.93 " +1.80 , ; IV-4 Chart Panel 10A Upper Lower 10B 11 Upper Series Euro-) Deposits (covered) Jan. 5 Differential " +1.96 1.28 Euro-) Deposits (covered) " ii Lower Differential " Upper Canadian Finance Paper Canadian Treasury Bill rate Jan. 7 " " U.S. Prime Finance paper (not plotted) " Bill rate differential II Forward Canadian dollar " 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 Dec. 31 Jan. 7 " Jan. 7 ii " October Jan. 7 U.S. Treasury Bill rate 12B 3.54 5.50 ii Swiss Deposit rate Second Rate German Interbank Loan rate U.S. Treasury Bill rate 12A Date 1.50p +0.22 4.50 3.45 3.26 4. 13 -0.19 +0.52 +0.16 +0.33 +0.89 4.32 3.45 5.50 7.228 3.26 3.45 Euro-) Deposits " 5. 62 Swiss 3-month Deposit rate " 1. 50p U.S. Treasury Bill rate " 3.45 IV-5 Chart Panel Series 13 Upper Netherlands Canada Dale Dec. 17 Jan. 5 United States Switzerland Middle * Germany United Kingdom Euro-dollar bonds Lower U.S. Corp. Dollar Euro-bonds Rate || Dec. 23 31 Jan. 7 Nov. U.S. Corp. DM Euro-bonds U.S. Corp. Aaa bonds 14 Upper Switzerland Germany United States Middle United Kingdom Canada Lower ** Japan United States 6.17 5.49 Dec. 22 " 7.35 4.99 7.79 8.45 7.3 7.72 7.22 7.26 " Jan. 7 400.7 Dec. 31 262.0 Jan. 7 230.56 " 267.81 Dec. 30 221.90 Jan. 1 451.44 Jan. 7 230.56 * 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.
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