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I V I — « T 3. 1973 Se.5»l - • fkmc SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES Of CHARTS • o w e F w e w B erne roe*, eaeeve s m e w 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-$ 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. Dolly 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 31,1%8. The changes in the format and order of the charts are explained in the Supplement to the series, which accompanied issue dated January 1, 1%9. All series and their sources are fully described in a Supplement dated January 1, 1972. ^ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per GERMAN MARK I X POUND US SWISS FRANC 1 DUTCH GUILDER FRENCH FRANC IH JAPANESE YEN S 1972 * Pound floated June 23, 1972 D M J 1973 s 0 V Chart IB SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR p Weekly averages «* cent • 2 BELGIAN FRANC us ITALIAN LIRA M J 0 S M s J 1972 0 1973 Ratio scale. U.S. cents s, U.S. cents 100 DOLLAR 95 UJL FOUND 260 240 m J S D 1970 M J 1971 S 0 M J 1972 S D M J 1973 S 3 / Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Way 11, 1971 - Dec 17. 1971 Weekly averages * * cwt GERMANY NETHERLANDS FRANCE JAPAN US JUNE JULY SEPT AUG 1971 *Fmancia : 4r anc OCT NOV DEC 1 Chart 2A 3 MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages I I ! 1 I i I I I ' 1 1 I I I I M I I I I I I I ! | I I I I ppEMIUM+ I I I I I I I I I I I I | I I | | Per cent per annum M ! I I I 6 I I CANADIAN DOLLAR U.K. POUND DISCOUNT GERMAN MARK DISCOUNT PREMIUM I DUTCH GUILDER DISCOUNT — M J S D 1969 M J S 1970 *• Canadian Dollar Rate not supported by Bank of Canada * * No quotation D M J 1971 S D M J S 1972 D I Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages I 1 1 I 1 ' I Per cent per annum 1 1 I 1 1 I 1 1 I 1 1 I ' 1 I 'p*U,' ' I " I 1 I I 1 I I ' 1 I 1 1 I 1 1 I 1 1 I " & FRENCH FRANC I I 11• 1I I I VfW'i I I I 1 I I 1I I 1I i I I I I I 1I l I 6 JAPANESE YEN 16 1 24 1 I I I I 1 I M J S D 1969 * Devaluation of the French franc kern 4.94 t® 5.56 for $1.00. • • W o quotation Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC POUND Friday figures cm* par m m m 1 PR£MIUM + - - - - - - GERNAM NARK 1 - 1 US. DOLLAR - - DISCOlINT - 1 ; 1 i M i ! i J i ! i S 1 1 1 1 1 1 1 1 1 ! i D 1970 M J 1971 S ! 1 D I M I 1 1 1 1 I I J 1972 i S 1 1 D 1 1 1 II M 1 11I i I . J 1973 \0 Chart 36 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJL POUND Friday figures Per cast per annuel 1 PREIKIUM + I - - ! - - SWISS F I M IC - 1 ri - 1 - \ I - DISCOUNT I I 1 1 I 1 1 M J 1 1 S 1 1 1 1 1 1 1 1 M D M 1970 J h S 1971 1 1 I I D M 1 I I 1 I I J 1 I I S 1972 1 1 1 1 1 1 1 1 1 1 I D M J S lf73 O w GOLD PRICE IN LONDON, 12.5 Kg BARS U S dollar equivalent per (me ounce Week's average of after noon fixings SO I 1I I i I 1I I 1 I I i I I 11I I 1 I I I I I I 1I i I I • I I 11 I I I I I 11 K CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 16 EURO-DOLLAR DEPOSITS CALL OVERNIGHT FEDERAL FUNDS 1 - i EURO DOLLAR OVER FEDERAL FUNDS 1 vVNvu.r^ i : ! : : I ' : • ; : A i EURO-CURRENCIES Weekly averages ^ A l w r ; ; i i I 1 i 1 ' i i ! : ! 1 i i i I i i i 1 : 1 i i i 1 i I 1M Per cent per annum IToo 1 2 Chart 56 CAil HOMEY RATES SELECTED FOREIGN AMD EEC CURRENCIES Per c u t per MET I GERMANY UJt. M J S D 1969 M J 1970 S 0 M s 0 1971 France. Day to day Honey. Melhertewds, Call Money. #eeWy awera«» Japan. Unconditional Money. Canada, Day to day Leans, weekly average;Germany. Can Money.U K , 2^ay Local Authority Deposits M S 1972 D Yl LONDON: EURO DOLLAR DEPOSIT RATES Friday figures *Ma> 12/7) -changed to Overr.g- • Lu'C Dollar Deposits * * July 1 —changed to 7 Da* Lufc L a- $ Chart 66 LONDON: EUKMXNJLAR DEPOSIT RATES Friday figures m I k j i i Vr Per ceat par aMt»n A / i \ irta v v A jJlA ill IfaJftmomm * N 1 I 1 l .1 1 t i 1 i I 1 1 1 1 1] II m$ m 1 1 1 ii 1 i i ,1 M mt 1 ii r v h t f 1 V i i l i i 1 i i 1 i i. wn Chart 7A NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures US. CERTIFICATE OF DEPOSIT I I I I I I I I I FAVOR EURO-DOLLAR DIFFERENTIAL " ^ Art r i WV\/I - A , A ElIRO DOLLAR OVER U.S. CIERTIFICATE OF DEPOSIT 1 i • M J I I I ! S D i i M 1969 , i i ! I i J 1970 i S , 1 ! i i 1 i D W i 1 i J i 1 i S 1971 i 1 i O l 1 1 1 1 1 1 i M J S 1972 1 1. 1 _J— D vx mm vomuMiooik cost o f u a ooujui 3-WOMTH DOLLAR DEPOSIT RATES-PRIMARY MARKET ElMKMPOtiAR DEPOSIT I I I I l I I l l I l l I l l I l l 1i X 7 E1W-OOUA1 OVER US. CERTIFICATE OF DEPOSIT j K j v A ^ W V V r y A ADJUSTED I I I I I 1I I 1I I I I I 1I I 1I I 1I I I I I 1I I 1I I 1I I I i I 1 I 11<I 1 1 K J S D W 1SW J S IS70 •Adjusted for Heserwe I t o q i w i K ? * Adiusted for 10% Marginal *>l»ni> 0««w*«ment * * * Adjusted <Of 20% Wefgioel H e w w Requirement l O W J 1#71 S O W J .1 0 lt72 Chart 8A LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS HIRE PURCHASE AND EURO DOLLAR RATES Friday figures EURO DOLLAR DEPOSIT HIRE PURCHASE COVERED STERLING CD's I I I I I I I I I I I 1 /VI : / D I F F E R !ENTIAL M J ' I I 1 I I I I I I I I I I I I I I I I I 1 I! » I I I I FAVOR STERLING CD's « ; - J I If S , | 1 i D 1969 ' 1 i M M ! I I J S 1 1 1 I D 1970 * Hire Purchase temporarily suspended as of August I I * * Sterling Certificates of Deposit started as ot August 11 I I M 1 1 1 1 I I J S 1971 I D i 1 1 M i i£7i<!"DPLiA? 1 J 1972 S D f1 Omrtm london: covered yields on u a d o l l a r funds LOCAL AUTHORfTY AND EURO-OOLLAR RATES Friday figures r Per cent per annum / Y EMBO-OOOAII DEPOSIT \ r f r\ - U ^ X ^ A / V ^ - LOCAL AUTHORITY DEPOSIT COVtJttD B - 111111M111 i i ! ii 1 i i I i i 11 1 111 1II 111 111 M 111111 fAMMLOC*AUfMO«TY ; V A V X/\r 1 - y < V n 1/1 OFFE*EHTML M J Ji fS - I I 11 0 MS# 1 11 • I I I J Ifft S I I I C I I M l I I I I I l I I J If71 S « w e i FUKMWtlM I1 f 1 1 1 1 m j s o I I 1 I 1 0 1972 Chart 9A INTEREST ARBITRAGE: UNITED STATES AMD UNITED KMGOOH Friday figures Fer cent per 3 - M O N T H TREASURY B I L L RATES UJCLOCA UNCOVERED M J 1969 S 0 * Plotted for comparison purposes M J 1970 s D M J 1*71 s 0 M j 1972 S 0 M I G K S T M m U f f : O W E D s t a t e s a n d u n i t e d KMCOOflf RATE DFFEROITIAL STERUHG 34kwth forwaro of iute FAVOR LONDON FAVOR «£W YORK lift ttn ISfl Chart IDA 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Fer cent per annum IN TERMS OF DM •ATE euro-dollar COVERED FAVOR FRANKFURT DIFFERENTIAL FAVC* EURO-DOLLAR s D 1969 No quotation M J 1970 S D M J 1971 s D M J 1972 S 0 14 r> 3-month funds i n t e r e s t a r b i t r a g e : e u r o - d o l l a r - franc ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE M TERMS OF SV86 HMNCS i I • i I i i I i i h j s d «i I ' i <' t I i » i i I i i I i i i i i h j s d h j s o i 1SW - Mo quotation 1*70 1#71 i i I i i I i i I »i i j s o 1#72 t w i e d states II I I 1M | i i ] l l e m iiates I! I I | M BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR Site 6 K » $ SHEAD M FAVOR Of COVERED RATE d f f /^Avv4jvA/V fAVOH U S f m a n c e paper r Chart 12A SELECTED SHORT TERM INTEREST RATES* UJC. us. US # 1968 1970 * 3 month treasury bill rates for ail countries except Japan (Average rate on ban* loans and discounts) and Germanydnterbank Loan Rate) 1372 1> Chart 120 selected short-term interest r a t e s * C#M j»r • S4W* rurytoll!taletortfS, Witom# 1 • • H i • • | M i «#totorU S #Mtor * * * * * m lm*m 1 liar jOMG'TERM bond yields leefcty figures 10 0 6 4 11 • 7 S 10 Monthly figures 0 6 l I I I I I I I M I ! I I I l I I I I I I I I I I I I I I I i I I I II 1968 1969 1970 h I I I I I I I I I I I I I I I I I I I 1971 1072 <ew 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 h# New series F starts 12 71 4 * Japan index of 225 industrial and other stocks traded on Tokyo exchange * * Japan index of all industrial aed other stocks traded on the first section of the Tokyo Slock Qcfcawf A January 3 , 1973 H. 13 No. 591 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate bi Effect Since E.E.C.: Belgium 5.0 France 7.50 Germany 4.50 M Italy 4.0 Dec. 21, 1972 Sov. 3 0 , 1972 1. 1. 4.5 Nov. 22, 1972 6.50 Nov. 2 , 1972 4.00 " A p r i l 10, 1972 4.5 O c t . 14, 1972 November 3 , * 7 2 3.0 S e p t . 8 , 1972 3.75 S e p t . 15, 1972 3.0 J u l y 10, 1972 9.0 Dec. 22, 1972 8.0 Dec. 8 , 1972 Canada 4.75 O c t . 25, 1971 5.25 Feb. 24, 1971 Japan 4.25 June 24, 1972 4.75 A p r i l 29, 1971 United States 4.50 Dec. 13, 1971 4.75 Nov. 11, 1971 Netherlands 4.0 1 " " ' Switzerland United Kingdom * * 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 " m f n f — l e n d i n g r a t e " based on average T r e a s u r y b i l l tender r a t e . December 2 2 , 1 9 7 2 . . . . 9 . 0 IV-2 «2jP LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower IB Upper Lower Belgian franc Italian lire Canadian dollar German marie Dutch guilder Upper German marie Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen 2A 28 Lower 3A 38 4 5A Upper | Middle Lower 56 Upper Lower - Date Dec. 29 Actual l a t e " " M A c t u a l Rata « Rate 42.019 234.86 40.015 +2.0*4 41.550 -1,640 100.45 40.647 40.453 41.96 40.72 -3.58 41.36 " H 40.49 -2.16 German mart U.S. dollar Swiss franc French franc Dec, 22 * 45.60 43.07 42.76 41.31 Gold price, U.S. dollar per ounce Dec. 29 64.88 Overnight Euro-S deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U.K., 2-day Local Aidbor. Deps. Canada, Day-to-day Loans France, Day-to-Day Money Germany, Call Money Netherlands. Call Money fee* 6.23 5.34 40.89 : M 27 " " 4 # Ifc# tee. 22 Bee. 20 8.00 3.75 Dee. 22 Dee. 29 7.50 te # IV-3 Chart Panel 6A Series Rate Date Euro-$ 7-Day Rate Dec. 29 5.12 Euro-S 1-month Rate 68 5.62 Euro-) 3-month Rate 5.81 Euro-S 6-month Rate 7A Upper Euro-) 3-month Deposits 6.25 Dec. 27 6-06 U.S. Certificate of Deposits 7B Lower Differential Upper Euro-S 3-month Deposits 5.58 +0-A8 6-06 Euro-$ 3-month Deposits (Adj.) 7.58 U.S. Certificate of Deposits (Adj.) Lower S.7Q Differential: on Adj. Euro-S Deposits +1.79 on Unadj. Euro-S Deposits 8A Upper Euro-S 3-month Deposits +0.27 Dec. 8 6.16 Hire Purchase Deposits (covered) 86 Lower Differential Upper Euro-S 3-month Deposits 5.43 -0.73 6.16 Local Authority Deposits (covered) Lower U.S. Treasury 6ill rate 9A 5.59 Differential -0.57 Dec. 29 5.05 U.K. Treasury Bill rate 96 Upper 8.19 Local Authority Deposit (uncovered) Dec. 22 8.62 Spread (+= favor London) Dec. 29 +3.14 3-month Forward Pound Lower Net Incentive (+- favor London) -3.54 J -0.40 : IV - 4 Chart Pawl 10A Upper Series Euro-S Deposits (covered) Date Dec. 27 Gem# lnte*ank Loan rate 10B Lower Differential Upper Euro-S Deposits (covered) 11 Upper f| -2.06 Canadian Finance Paper 5.13 5-05 Canadian Treasury Bill rate 3.58 U.S. Prime Finance paper (not plotted) 5.38 BUI rate differential -1.47 Forward Canadian dollar 12A Third Net incentive on bills BotSoe Met incentive on Finance Paper Upper U.K. Treasury Bill rate 40.44 46-10 Dec. 29 U.S. Treasury Bill rate Gene an Interbank Loan rate Lower U.S. Treasury Bill rate 128 Euro-S Deposits Swiss 3-month Deposit rate 8.19 5.05 Dec. 27 Japanese Average rate Canadian Treasury Bill rate 46.66 4.00 Differential U.S. Treasury Bill rate Second 3.94 B-38 Swiss Deposit rate Lower •ate 8.38 A. 77* Dec. 29 3.58 5.05 5.81 4.00p U.S. Treasury Bill rate 5.05 IV-5 Chart Panel Series Dale 13 Upper Netherlands Dec. 15 Dec. 22 7.06 6.98 Dec. 20 6.81 Canada United Stales Switzerland Middle Germany United Kingdom Lower U.S. Corp. Dollar Euro-bonds 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 Serijes, SeHes p Rale Dec. 97 S.A7 Dec. 15 Dec. 7 Dec. 15 5.36 8.59 8.64 I W O 79 99 November „ 6.94 «• Dec. Dec. Dec. Dec. Dec. 7.68 7.12 22 15 22 22 29 436.9 288.8 292.8 262.94 265.66 Dec. 22 286.31 Dec. 21 285.61 Dec. 16 835.70 Dec. 29 265.66 * 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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