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< h\<OdoUrie, w2No.5B0 H-t3 W ImUmWimmW Fi—t» f — » • y v C — — h — i * tartiw ' ^ "• J * * - - 13 y V- SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS M M O OF GOVEMOK OF THE FEDEIAI. tESECVE SKTEM • TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart IA 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 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, 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. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages GERMAN MARK I.K. POUND SWISS FRANC DUTCH GUILDER FRENCH FRANC Central against JAPANESE YEN M J J 1972 1973 ound floated June 23, 1972. Chart I B SPOT EXCHANGE RATE • MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages A! /BELGIAN FRANC (V ~ Central rate against US X / / / ITALIAN LIRA 1 1 1 1 1 1 1 1 1 1 i 1 i 1 i i 1 i i 1 i T i J 1973 1972 Ratio scale, U.S. cents Ratio scale, U S cents 100 300 CANADIAN DOLLAR - 270 240 90 ILK. POUND 1 1i 1 11 11 1 ! 1 M j S D 1970 1 1 1 1 1 1 1 1 1 II M J 1971 S D X M M 1i i 1 i i r i i J S 1972 D 1 I 1 1111 11 M M J S 1973 D Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR May 11, 1971 - Dec 17. 1971 Above par GERMANY NETHERLANDS FRANCE JAPAN Below par JUNE JULY AUG SEPT. 1971 * Financial franc OCT. NOV DEC. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR * « y 11. 1 9 7 1 - Dec 17 1971 ^ <>, ;7 5 76 Above par MAY JUNE JULY AUG. SEPT. 1971 • f o r clarity the vertical scale is double that used in 1C \f A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR weekly averages Per cent per annum PREMIUM CANADIAN DOLLAR U.K. POUND DISCOUNT- PREMIUM GERMAN MARK DISCOUNT- PREMIUM DUTCH GUILDER DISCOUNT — S 1969 1970 * Canadian Dollar Rate no' supported by Bank 01 Canada * * No quotation D S 1971 D J 1972 S D 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages ' ' I ' ' I Per cent per annum ' ' I ' ' I ' ' I ' ' I ' ' I PREMIUM •' I ' ' I ' ' I ' ' I ' ' I ' ' I ' ' ' ' I U FRENCH FRANC , I , I I , , IWW- I i i I i i I i i I !i I i i 1 i i I i ! I c \ * Devaluation of the French franc from 4.94 to 5.55 for $1.00. • • N o quotation 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Per cent per a n n u m 20 PREMIUM GERMAN MARK V U S. DOLLAR DISCOUNT No q u o t a t i o n Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM SWISS FRANC -.W FRENCH FRANC DISCOUNT - M J S D 1969 J S 1970 'Devaluation of the French franc from 4.94 to 5 5 5 for $1.00 D S 1971 S 1972 D GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of a f t e r n o o n f i x i n g s U S. dollar equivalent per fine ounce 60 50 40 S D 1969 S M 1970 S D 1971 D J 1972 D CHART 5A CALL MONEY RATES 1 1 1EURO-OOUAR INEPOSITS CALL <WERMIIGHT I I i I 1 i - - - i rM : J I FEB€RAL FUNDS i1 - 11 - - EURC1-DOLLAR OVER FEDERAL FUNDS 1 ( r v Y T - -W- — ! i ! i i ! i i v yv L i i I i i i i i I i i Wt u \|IL 1 ~ ,Vw rwv [ 111111i 1i i . i 1 . 1 1 1 I 1 1 _L_ EURO-CURRENCIES Weekly averages EURO-OM EURO SWISS FRANC 1970 1969 * M a y io 1971 - Charged to Overnight Euro $ Deposits 1971 1972 > har CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Per cent per an Friday figures '"S 8 4 ^ NETHERLANDS i 1 i 0 8 4 0 12 8 4 0 nee. Day to day Money; Netherlands. Call Money, weekly average Japan. Unconditional Money. iada, Day to day Loans, weekly average, Germany, Call Money,U K . 2 day Local Authority Deposits Chart6A LONDON: EURO DOLLAR DEPOSIT RATES Per cent per annum Friday figures 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 D M J S 1970 * M a y 12/71-changed to Overnight Euro-Oottar Deposits -changed to 7-Day Euro-Dollar D M J S 1971 O M J S 1972 O •V. Chart 6 6 LONDON: EURO DOLLAR DEPOSIT RATES Per cent per annum Friday figures I ' I ' ' l i 12 (1A /I 10 V J V\ w # o # m A ikJ I k PJ w V^34#0MTM .A v 1 ! ] i 1i i ! i i i : i j s 1969 i i 1M M 1i i 1i i J 1970 1 11 11111111 S 1971 / V ^ ' V 11111111111 J s 1972 Chart 7A NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET US. CERTIFICATE OF DEPOSIT DIFFERENTIAL FAVOR EURO-DOLLAR EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT J s D 1969 J 1970 S D M J 1971 s D M J 1972 S D Chart 78 NEW YORK-LONDON: COST OF U S. DOLLAR FUNDS 3 - M O N T H DOLLAR DEPOSIT R A T E S - P R I M A R Y MARKET Wednesday figures Per cent p*r annum EURO DOLLAR DEPOSIT ADJUSTED EURO DOLLAR DEPOSIT U.S i i i i 1 i i .j. i i ; CERTIFICATE OF DEPOSIT ADJUSTED* i J., i i i i i i i 1 i i ! EURO DOLLAR OVER S CERTIFICATE OF DEPOSIT ADJUSTED J S D 1969 M J 1970 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * A d | u s t e d for 20% Marginal Reserve Requirement S D M J 1971 S D M J 1972 i i ! LONDON: COVERED YIELDS ON U.S. DOL1AR FUNDS HIRE PURCHASE AND EURO-DOLLAR RATES Friday figure* Per cent per annum EUaO-OOUAft DEPOSIT COVERED FAVOR STERLING CD's DIFFERENTIAL M J FAVOR EURO DOLLAR S S D 1SS9 1*70 * Hire Purchase temporarily suspended as of August 11 * * Sterling Certificates of Deposit started as of August 11 D M J 1871 S D M J 1S72 S D LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL A U T H O R I T Y A N D EURO DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT rCOVERED L I ! i 1 I ! 1 u FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR DIFFERENTIAL 1 I I I ! 1 I 1 I i I 1 I I I 1 I I I I I Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cart per 3 - M O N T H T R E A S U R Y B I L L R A TE S UJL LOCAL AUTHORITY DEPOSITS UNCOVERED M J S 0 1969 •Plotted tor comparison purposes M J M 7 0 s D M J 1971 s D M J U 7 2 S 0 Chart 9 6 INTEREST ARBITRAGE UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum PREMIUM, ! RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I SPREAD W FAVOR OF LONDON FORWARD RATE DISCOUNT 12 T 4 rAvOR LONDON DIFFERENTIAL FAVOR NEW YORK M J S D 1969 M J 1970 S D « J 1971 S D M J 1972 S D CfcartlOA 340ONTM FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Pef cent per annum 14 f. in* a \I —L l l _L 1 1 i 1 1 1 —1 J I J - J J J J i _L 1 . 1 1 DIFFERENTIAL ii j4iv i i i i « i i J i J J S i i VI 0 Iff# * o quotation i j • i i i I i J J 1970 S i , ' \ Vy , J i C \|IAav i H J 1971 S D i « f**o* cimooollar i i i i i i i i l J 1972 S 0 Chart 108 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF SWISS FRANCS COVERED SWISS DEPOSIT RATE I l I I l I I l I DIFFERENTIAL I I I I I I I I l I FAVOR ZURICH FAVOR EURO-DOLLAR 1969 — No quotation Chart 11 3-MONTH INTEREST AHWTMACfc UNITED STATES - CANADA Friday figures NrMtftn - BILL RATES CAM m . CO. UNITED STATES FORWARD CANADIAN DOLLAR BILL RATE DIFFERENTIAL OF COVERED RATE DIFFERENTIALS W J lMf Ss DD H« JJ Ss 1#7C O0 WM J J vni S s D 0 e j J wn $ 0 \1$ Chart 12* SELECTED SHORT-TERM INTEREST RATES* UJL US. 1S68 1*70 • 3-month treasury bill rates for an countries encept Japan(Avef«ge rate on bank loam* and dtscovfrts) and Germany! Interbank Loan Rate) H v Chart 12B SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO-DOLLAR - LONDON 10 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 VELDS Weekly figures Per cent per annum 11 UM. ». DOUJUI EUeO-BOWDS US. Monthly figures U.S. —us. 1968 1970 1 l 1 l I l u l i x _ i x l - i x i 1 l i I 1, 1971 1972 * Hew series for Switzerland starts 8 2-68, U S Corp Dollar Euro Bonds and U S Corp 0M Euro Bonds starts 12 70 # # Hew Average yield oi aM German F > Bonds begins 1 7-69 * * * We* series F starts 12 71 CHART 14 1958=100 INDUSTRIAL STOCK INDEXES Ratio scale 280 UNITED STATES - 200 1 1 i i ! i i 1i i 1 M L La 1 i i 1 I W I i i 1 i i 1i i 1 i i i 1i i /vk A L I 11 111111 II : SWITZERLAND / j 360 V i UNITED KINGDOM / 240 i I 1 M .11 I L I I ! l ^ V W 1 I 1 111 ' 1 ! 1 11 111 1! i 11 111 I I ! JAPAN/ 1 / i i i i i ! i i 1i i 160 : 480 / " 360 GERMANY 240 CANADA \ J i : i : ; i i :• ; : !i i ! 1969 l1 l lJ ! i. l l .: I i l l i i i i 1970 i 1 i 1971 i 1 i i 1 1 1 1 1 1 1 I Japan index of 225 i n d u s t r i a l and other stocks traded on Tokyo exchange. * Japan index of all i n d u s t r i a l and other stocks traded on the first section of the Tokyo Stock Exchange. 1972 1 1 1 October 16, 1972 H. 13 No. 580 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since k.o March 2 , 1972 t.5 Feb. 5 . 1972 5.75 April 6 , 1972 6.0 Jan. 13. 1972 Previous Rate In Effect Since E.E.C.: Belgiue France Genua? Oct. 9 , 1972 3.0 Feb. 2 5 , 1972 MHy h.O A p r i l 1 0 , 1972 it.5 Oct. lit, 1972 Netherlands 3.0 S e p t . 8 , 1972 u.o March 1 , 1972 Switzerland 3.75 S e p t . 1 5 , 196s 3.0 6.0 June 22, 1972 5.0 J u l y 10, 1967 S e p t . 3 , 1971 1 f 1 3.5 Canada k.75 Oct. 2 5 , 1971 5.25 Feb. 2it, 1971 Japan 1*.25 June 2k, 1972 it.75 April 29, 1971 United Slates It.50 Dec. 1 3 , 1971 It.75 Nov. 11, 1971 • • E f f e c t i v e October 1 3 , 1972, t h e Bank o f England replaced i t s t r a d i t i o n a l Bank Rate with a f l u c t u a t i n g "minimum l e n d i n g rate" based on average Treasury b i l l tender r a t e . October 13 7.25% N^A^rb 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 Belgian franc Italian lire Canadian dollar German mark Dutch guilder Lower 2A 2B Upper Lower 3A 4 Middle Lower Upper Lower L ] 21*1.90 •1.895 •• 4-1.1*61* -0.226 101.80 4-0.1* yu ACTUAL RATE Gold price, U.S. dollar per ounce Upper +1.132 ,3 " +2.318 German mark U.S. dollar Swiss franc French franc 3B 5B Oct. ACTUAL RATE German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen ! 5A Rate Date 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 " 4-0.063 «< 4-2.65 4-2.58 -2.1*1* +3.54 4-0.22 " 44.28 N.A. " 4-5.51* 4-2.15 4-3.62 " " j " | | tt 61*. 91 Oct. 11 1*. 87 5.09 -0.22 " Oct. 6 4-2.32 13 1 . 5 8 2.90 Oct. 6 " O c t . 11 O c t . 13 " S e p t . 22 1.50 3.85 h.25 6.75 3.50 5.00 6.75 0.53 IV - 3 Chart Panel 6A Upper Rate Date Euro-S 7-Day Rate 6B 7A Series Oct. 13 " 5.38 Euro-$ 3-month Rate " 6.00 Euro-S 6-month Rate " 6.19 Euro-S 3-month Deposits Oct. 11 5.9U « 5.30 U.S. Certificate of Deposits 7B Lower Differential " +0.61* Upper Euro-S 3-month Deposits " 5.9k 7.1*2 Euro-S 3-month Deposits (Adj.) " U.S. Certificate of Deposits (Adj.) " 5.53 Lower Differential: on Adj. Euro-S Deposits " +1.89 '• +0.1*1 Upper Euro-S 3-month Deposits Lower Differential Upper Euro-S 3-month Deposits on Unadj. Euro-S Deposits 8A S e p t . 29 S t e r l i n g C e r t i f i c a t e s o f Deposj t 8B " Lower 9A Upper Differential S e p t . 29 U.83 5.91* 1*.86 " U.S. Treasury Bill rate Oct. 13 U.K. Treasury Bill rate » -1.08 1*.78 6.60 Local Authority Deposit (uncovered) Oct. 6 Spread (+= favor London) Oct. 13 +1.82 " -2.1*7 « -O.65 3-month Forward Pound Lower 5.9** -1.11 Local Authority Deposits (covered) 9B Ml* Euro-J 1-month Rate Net Incentive (+= favor London) 7.U1* IV-4 Chart Panel Series 10A Upper Euro-S Deposits (covered) Lower Differential Rate Date Oct. 11 German Interbank Loan rate 106 11 Upper 6.88 +3.69 Euro-S Deposits (covered) 3.a Swiss Deposit rate 1.50p Lower Differential Upper Canadian Finance Paper -1.9b Oct. 13 U.S. Treasury Bill rate Second 12A 3.19 5.25 h.78 Canadian Treasury Bill rate 3.1*5 U.S. Prime Finance paper (not plotted) 5.13 Bill rate differential -1.33 Forward Canadian dollar +0.28 Third Net incentive on bills -1.05 Bottom Net incentive on Finance Paper +0.U0 Upper U.K. Treasuiy Bill rate Oct. 13 U.S. Treasuiy Bill rate Lower German Interbank Loan rate Oct. 11 6.88 Japanese Average rate August 6.896 Canadian Treasury Bill rate U.S. Treasuiy Bill rate 12B 6.60 h.78 Oct. 13 Euro-J Deposits „ Swiss 3-month Deposit rate " U.S. Treasuiy Bill rate " U.78 6.00 1.50 u.78 IV-5 Chart Panel Series 13 Upper Netherlands Date R»pt. Canada United States Switzerland Middle U.S. Corp. Dollar Euro-bonds U.S. Corp. DM Euro-bonds Oct. 13 6.77 " 5.W* Upper Switzerland Gem any United States Middle Lower 1.98 « SERIES •• 7.87 Oct. 6 9.56 ? August 8.00 <• 6.1*7 " U.S. Corp. Aaa bonds 14 6.0k 9: S e p t . 29 * Germany United Kingdom Lower Rate « , >ct. 6 7.19 13 1*59.2 Ser>t. 29 Oct. 6 157.1 297.0 13 21*9.55 United Kingdom Oct. 13 272.63 Canada Oct. 5 271.13 Japan Oct. 7 71*2.73 Oct. 13 21*7.89 United States 21+7.8) * 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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