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(516/517)

Selected Interest &
Exchange Rates
W eekly Series o f Charts

July

6,

1998

DIVISION OF
INTERNATIONAL FINANCE

Prepared by the

BOARD OF GOVERNORS

FINANCIAL MARKETS

FEDERAL RESERVE SYSTEM

SECTION

Washington, D.C. 20551




Table of Contents

TABLES
1. LATEST FIGURES PLOTTED
2. DAILY CERTIFIED SPOT
EXCHANGE RATES
CHARTS
1. SPOT EXCHANGE RATES INDICES
2. 3-MONTH FORWARD EXCHANGE
3. GOLD PRICE - LONDON
4. CALL MONEY RATES
5. 3-MONTH INTEREST RATES
6. EURO-DOLLAR DEPOSIT RATES
7. SELECTED EURO-DOLLAR AND
8. INTEREST ARBITRAGE: 3-MONTH
9. LONG-TERM GOVERNMENT
10. INDUSTRIAL STOCK INDICES




SUBSCRIPTION RATES:
Weekly $30.00 per year or $.70 each
in the United States, its possessions,
Canada, and Mexico. Elsewhere,
$35.00 per year or $.80 each.
Address requests to Publications
Services Division of Support
Services and make payment
remittance payable to the Board of
Governors of the Federal Reserve
System in a form collectible at Par in
U.S. currency.

Chart 1

Spot Exchange Indices
Ratio scale
March 1973=100




Dollar prices of foreign currencies and weighted average values (dashed line)
(Average for week ending Wednesday)

Ratio scale
March 1973=100

210

190

170

150

75
55

35

15

Chart 2

3-Month Forward Exchange Rates
Premium (+) or (-)
(Averages for week ending Wednesday)

Percent per annum




Percent per annum
1

0

-1

-2

-3

8
6

4

2

0

Chart 3

Price of Gold in London
(Averages for week ending Wednesday)
U.S. dollars per fine ounce




U.S. dollars per fine ounce

Chart 4

Call Money Rates
(Weekly series)
Percent per annum




Percent per annum

6

5

4

3

2
9

8
7

6
5
4

3

2

Chart 5

3-Month Interest Rates
(Weekly series)
Percent per annum




Percent per annum

Chart 6

Euro-Dollar Deposit Rates, London
(Averages for week ending Wednesday)

Percent per annum

Percent per annum

8
Overnight

4 -

J_________L
1995




1996

1997

1998

Chart 7

Selected Euro-Dollar and U.S. Money Market Rates
Differential: Plus(+), Favors Borrowing in U.S.
(Averages for week ending Wednesday)
Percent Per Annum

Percent Per Annum

+1

+1
Differential

0

-1

1995




1996

1997

1998

______ I_________ I_________ I______
1995

1996

1997

1998

-1

Chart 8

Interest Arbitrage: 3-Month Funds
Differential: plus(+), indicates favor dollar assets
(Average for week ending Wednesday)
Percent per annum

Percent per annum

1

1
Differential

Differential

0

0

-1 ________ I________ I________ I_____
1995




1996

1997

1998

_______ I_______ I________1
1995

1996

1997

1998

-1

Chart 9

Long-Term Government Bond Yields
(Weekly series)
Percent per annum




Percent per annum
9

8

7

6

5

9

8
7

6
5
4

5

4

3

2

1

8

7

6

5

4

Chart 10

Stock Indices
(Weekly series)
Ratio scale
End-1994=100

Ratio scale
End-1994=100

1995

1995




1996

1997

1998

1996

1997

1998

3-Jun-98
Chart 1.

10-Jnn-98 17-Jun-98 24-Jun-98 l-Jul-98

Spot Exchange Rates and Indices

Noon buying rates (U.S. cents, weekly averages)
Belgian franc
Canadian dollar
French franc
German mark
Italian lira
Japanese yen
Netherlands guilder
Swiss franc
U.K. pound

2.7252
68.712
16.763
56.190
0.05703
0.72017
49.870
67.643
163.50

2.7254
68.487
16.759
56.203
0.05707
0.71391
49.873
67.683
163.39

2.6897
68.056
16.550
55.503
0.05634
0.69886
49.212
66.788
164.13

2.7002
68.031
16.608
55.697
0.05652
0.72525
49.412
66.650
166.97

2.6804
68.067
16.488
55.288
0.05611
0.71107
49.050
65.731
166.57

107.39
68.48
75.54
158.07
32.73
188.56
143.17
217.62
66.13

107.39
68.26
75.52
158.10
32.76
186.92
143.17
217.75
66.08

105.99
67.83
74.58
156.13
32.34
182.98
141.28
214.87
66.39

106.40
67.81
74.84
156.68
32.44
189.89
141.85
214.42
67.53

105.62
67.84
74.30
155.53
32.21
186.18
140.81
211.47
67.37

107.80
66.72
73.14
173.00
29.74
199.52
146.69
54.83
222.54
64.52
101.63

107.39
66.16
72.81
172.17
29.60
206.24
146.15
55.07
220.35
65.21
100.66

107.26
66.64
72.72
171.93
29.57
203.15
145.96
55.09
218.62
65.48
101.45

0.71
2.14
2.15
0.59
5.35
2.19
3.84
-1.95

0.64
2.13
2.14
0.61
5.34
2.15
3.89
-1.97

0.65
2.14
2.13
0.60
5.39
2.17
3.79
-2.02

0.70
2.16
2.17
0.68
5.37
2.21
3.64
-2.06

291.80

293.16

288.44

294.65

294.71

5.63
5.59
4.77
3.38
3.30
0.46
3.45
1.47
6.90

5.46
5.43
4.70
3.38
3.37
0.43
3.35
2.03
6.90

5.61
5.58
4.76
3.39
3.34
0.45
3.29
1.62
6.65

5.44
5.43
4.76
3.39
3.35
0.45
2.42
1.65
7.20

6.04
5.86
4.88
3.39
3.53
0.38
2.89
2.47
7.03

Indices, March 1973 base rates = 100
Belgian franc
Canadian dollar
French franc
German mark
Italian lira
Japanese yen
Netherlands guilder
Swiss franc
U.K. pound

Weighted average exchange value indices, March 1973=100
Belgian franc
Canadian dollar
French franc
German mark
Italian lira
Japanese yen
Netherlands guilder
Swedish krona
Swiss franc
U.K. pound
U.S. dollar
Chart 2.

0.70
2.15
2.14
0.51
5.38
2.16
4.05
-1.76

Gold Price in London, Afternoon Fixing

U.S. dollars per fine ounce
Chart 4.

108.25
66.52
73.41
173.69
29.85
202.26
147.34
55.54
223.48
63.55
100.45

3-Month Forward Exchange Rates, Premium or Discount

Canadian dollar
French franc
German mark
Italian lira
Japanese yen
Netherlands guilder
Swiss franc
U.K. pound
Chart 3.

108.09
66.66
73.32
173.37
29.79
203.95
147.12
55.76
223.04
63.50
100.28

Call Money Rates

U.S. federal funds
Overnight Euro-dollar deposits
Canada
France
Germany
Japan
Netherlands
Switzerland
United Kingdom




3-Jun-98
Chart 5.

3-Month Interest Rates

U.5. 90-day CD's, secondary market
Canadian finance paper
French interbank rate
German interbank rate
Japanese CD rate
Netherlands interbank rate
Swiss interbank rate
U.K, interbank sterling
Weighted average foreign interest rate
(G-10 Countries)
Chart 6.

5.59
5.08
3.50
3.49
0.55
3.46
1.66
7.38
3.80

5.59
5.07
3.47
3.51
0.54
3.49
1.86
7.59
3.82

5.59
5.12
3.46
3.48
0.55
3.49
1.76
7.59
3.81

5.60
5.13
3.46
3.48
0.56
3.60
1.75
7.69
3.84

5.60
5.08
3.45
3.46
0.66
3.58
1.96
7.73
3.84

5.59
5.50
5.51
5.56
5.63
5.75

5.43
5.50
5.53
5.57
5.63
5.76

5.58
5.51
5.52
5.57
5.59
5.69

5.43
5.53
5.53
5.56
5.63
5.73

5.86
5.53
5.54
5.58
5.64
5.72

Euro-Dollar Deposit Rates

Overnight
7-day
1-month
3-month
6-month
1-year
Chart 7.

10-Jun-98 17-Jun-98 24-Jun-98 l-Jul-98

Selected Euro-dollar & U.S. Money Market Rates

Overnight Euro-dollar deposits
U .S . federal funds
Differential

5.59
5.63
-0.04

5.43
5.46
-0.03

5.58
5.61
-0.03

5.43
5.44
-0.02

5.86
6.04
-0.18

3-month Euro-dollar deposit
U.S. 90-day CD's, secondary market
Differential

5.56
5.59
-0.03

5.57
5.59
-0.02

5.57
5.59
-0.02

5.56
5.60
-0.04

5.58
5.60
-0.02

Euro-dollar deposit
Interbank sterling (London), covered
Differential

5.56
5.58
-0.02

5.57
5.60
-0.03

5.57
5.58
-0.02

5.56
5.63
-0.06

5.58
5.62
-0.04

U.S, commercial paper
Canadian finance paper, covered
Differential

5.50
5.80
-0.29

5.50
5.79
-0.29

5.50
5.77
-0.27

5.50
5.78
-0.28

5.51
5.79
-0.28

Euro-dollar deposit
Interbank DM (Frankfurt), covered
Differential

5.56
5.65
-0.08

5.57
5.68
-0.11

5.57
5.64
-0.07

5.56
5.63
-0.07

5.58
5.65
-0.07

Euro-dollar deposit
Swiss interbank, covered
Differential

5.56
5.73
-0.16

5.57
5.72
-0.15

5.57
5.67
-0.10

5.56
5.56
0.00

5.58
5.62
-0.03

5.32
4.92
4.86
1.23
3.00
4.90
5.75
5.57

5.29
4.84
4.78
1.28
2.97
4.83
5.69
5.45

5.34
4.85
4.79
1.32
3.05
4.85
5.85
5.47

5.35
4.84
4.77
1.35
3.07
4.83
5.86
5.45

176.42
Canada
177.83
170.76
172.40
217.67
France
215.12
211.94
212.66
Germany
226.12
229.43
227.08
228.91
Japan
76.88
74.20
75.74
77.31
Netherlands
285.11
285.18
278.60
275.40
Switzerland
279.16
280.26
275.01
278.85
United Kingdom
165.52
163.44
162.55
160.83
United States
228.89
226.61
230.01
223.73
Indices (in order, rebased to end-1994=100) are Toronto Composite, SBF250,
FAZ Aktien, Tokyo SE (Topix), CBS All-General, Swiss Performance Index,
Financial Times Ordinary, NYSE Composite

174.84
218.58
234.18
81.51
287.66
291.11
162.70
233.36

Chart 8.

Chart 9.

Interest Arbitrage, 3-Month Funds

Long Term Government Bellwether Bond Yields
10-year maturity, where available

Canada
France
Germany
Japan
Switzerland
Netherlands
United Kingdom
United States
Chart 10.

5.32
4.91
4.86
1.23
2.93
4.90
5.70
5.56

Stock Indices (Wednesday figures)