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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE U.S. WEEKLY SERIES OF CHARTS WARD 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. Octlar 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. 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 PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock Indices PART IV. LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAP'TAL MARKETS DEVELOPMENTS ABROAD, which has been published under that title through December 31,1968. The changes in the format and order of the charts are fully explained in the Supplement to the series, which accompanied issue dated January 1, 1969. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Above GERMAN MARK Central rate against U.S. dollar SWISS FRANC i i I l I 1 I JI I1 I L_ DUTCH GUILDER FRENCH FRANC Central rate against US dollar JAPANESE YEN I 1972 * Pound floated June 23, 1972 . i 1973 ¥ SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly average* Per cent Above BELGIAN FRANC ITALIAN M J S M D J 1972 0 S 1973 Ratio scale, U.S. cents v v - - CANADIAN DOLLAR UJC. POUND 2 > - - i i 1 I 11 i i 1i I M J S D i i 1i i 1i i 1i i M 1970 J 1971 S D 111 i i M J i M 111 S 1972 D 111 111 I I 111 M J S 1973 D Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR NETHERLANDS FRANCE JAPAN Par US MAY JUNE JULY SEPT. AUG. 1971 * Financial franc OCT. NOV. DEC. \H Clwl ID SWT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR 11. 1971— Oec._17.J97J U.K. SWITZ. ITALY UK. BELGIUM ITALY swrrz. MAY JUNE JULY AUG. SEPT. 1971 •For clarity the vertical scale is double that used in 1C OCT. NOV. DEC. Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum PREMIUM- CANADIAN U.K. POUND DISCOUNT- PREMIUM DISCOUNT- PREMIUM DUTCH DISCOUNT— M S S D 1969 1970 * Canadian Dollar Rate not s u p p o r t e d by Bank of Canada. * * No q u o t a t i o n D M J 1971 S D M J 1972 S D Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum PREMIUM* SWISS FRANC FRENCH FRANC 1 1 1 11 i i i i 1111 i 1111 111 1 1 1 1 1 1 1 1 1 i 111 i i I 1 1 1 1 1 * Devaluation of the French franc from 4 94 to 5 55 tor $1.00 * • Wo quotation • Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC POUND Friday figures Per cent per annum 20 GERMAN MARK u a . DOLLAR DISCOUNT S D 1969 * No q u o t a t i o n . M S 1970 D J 1971 S J 1972 S D #1 Chert 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC POUND Friday figure* Per cent per * * * * * FRANC FRENCH FRANC DISCOUNT M J S D 1969 M J S D 1970 * Devaluation of the French franc from 4.94 to 5.55 for $1.00 M J 1971 S 0 M J 1972 S D Chart 4 GOLD PRICE IN LONDON, 12.5 Kg BARS W e e k ' 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 80 70 60 50 40 fttiCALL MONEY RATES DOLLAR FUNDS 16 EURO-DOLLAR DEPOSITS CALL OVER#IICHT • - r 12 i H i m & i - • FEBERAL FUNDS 1 - 1 e w •DOLLAR OVER FEDERAL FUNDS I n % 1 1 1 . 1 1 / V i / i / i 1 VVl v f ]pt 1 1 1 1 1 1i i 1 Wvy1 / JJ - i IVv i i 1 i i 1 i i M 1 1 1 1 1 1 111 I ! 1.1 : J 1 1 1 M EURO-CURRENCIES Weekly averages EURO-SWISS FRANC I I I I I I 1 I I 1 I I I I I 1 I M J 1969 1 S D * J S 1970 May 10. 1971 - Chained to Overnight Euro $ Deposits. D M J S 1971 D M J F 1972 S D 1 II . Chart SB CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 - ; _ A f v ~ / M rA i Jl V 1 1 M 1 , 1 ! 1 1 i i 1 i i 1 i i 1 i i 8 FRANC!E r r i Ufi w 4 FMERLAND! 11 1 1 1 1 1 1 1 I I i 1 1 1 I I 1 1 11 1 1 0 - '"X i i 1 i i 1 i I 1 l I 1 1 1 1 1 1 1 1 1 II CANADA 4 1 1 1 1 1 1 1 11 1 1 i I 1 i i 1 i i 1 i i 0 12 GERMANY UJC. 4 0 S D 1969 J 1970 S D J S D 1971 France. Day-to-day Money. N e t h e r l a n d s , Call Money, weekly average Japan, U n c o n d i t i o n a l M o n e y . Canada, Day to day Loans, w e e k l y a v e r a g e , G e r m a n y . Call Money. U K . 2 day Local A u t h o r i t y Deposits M J 1972 s D CIWttA # May 12/71-changed to Overnight Euro-Ooller Deposits **July-1 -changed to 7-Day Euro-Dollar LONDON: EURO DOLLAR DEPOSIT RATES Friday figures F*r cent per mmmi 12 AN rr / i / i \ 10 h jkJ 1 Jv U v v A / id < I I 1 I I M 1 I I J I I 1 1 i S D 1969 1 I I M I 1 1 1 1 I J 1970 S D i i M 1 i i 1 i J S 1971 i 1 i D i M K V 1 1 1 1 1 1 1 1 1 J S 1972 D Chert 7A MEW YORK-LONDON: VELDS ON UJ . DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Far cent per 12 10 S 4 US. CERTIFICATE OF DEPOSIT 2 DIFFERENTIAL FAVOR EURO-DOLLAR 4 2 + 0 EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT 2 Kt J S 0 1969 M J 1970 S D M J 1971 s D M J 1972 S D ^ . Chart 78 NEW YORK-LONDON: COST OF US. DOLLAR FUNDS 3-month 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 1 y 11. r\ . /\4 1 f,/jj 1 EURO-DOLLAR DEPOSIT r rJv \ ADJUSTED V U. V' A, ,u US. (XKTFICATE OF DEPOSIT ADJUSTED * EURO-DOLLAR OVER U S. CERTIFICATE OF DEPOSIT ADJUSTED • A d j u s t e d for Reserve Requirement * * A d j u s t e d for 10% M a r g i n a l Reserve R e q u i r e m e n t s * * A d | u s t e d for 2 0 % M a r g i n a l Reserve R e q u i r e m e n t 1 Per cent per annum CtwtSA LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE AND EURODOLLAR RATES Friday figures Far cent per w i n m i COVERED FAVOR STERLING CD's differential M J S D M 1IM # J S 1971 Hire Purchase temporarily suspended as of August 11 Sterling Certificates of Deposit started as of August 11 # # 0 M J 1971 S D M J 1072 s 0 7 0 Chart 86 LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS local authority and euro d o l l a r rates Friday figures Per cent per annum 12 EURO DOLLAR DEPOSIT 9 6 LOCAL A U T H O R I T Y DEPOSIT COVERED 3 + FAVOR LOCAL AlfTMMfTY A A 0 < 1 J y n 1 A - W 3 V ' I " 6 1 i i i FAVOR 1EURO-DOLLAR f p i F F E R I ENTIAL M J I N n ! S i i D 1969 ! i i 1 i i M J 1970 1 i S i > i D i i M i i I i J 1971 i I 11 S D 1 1 1 1 1 1 1 1 1 1 1 I M J S 1972 D Chert f * INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures J \ | 1 ! AO / A , Per cent per 1 LL RATES UJC LOCAL AilTHOIIITY DEPOSITS* UNCOVERED A /V ~J( 7~"T7L r lonooh A . k j A J II1 1J 1 i 1 1 1 t V i e w youk 1 1 1 1 1 1 II 11 1 1 1 1 11 11 1 1 1 1 I I 1 I I 1 I I 1 I I l»70 1*71 IMS ' M M «o> r n i m i i o K PWPOM* W t INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures 4 RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING 2 + 0 2 4 « a M 12 DIFFERENTIAL 4 FAVOR LONDON 1 + • 2 4 • FAW* MEW YORK * I* 3-MONTH FUNDS INTEREST ARBITRAGE EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE P*fc«itp«raMMi 14 IN TERMS OF DM Wednesday rales 12 10 MUI RATE n yV| S / 1/ 1 ,1, vA'A/ V w / BM0-00UA8 COWERED J J i 1 1 ,1 1 1 1 J-J—1 J J - I 1 1 1 I I 1 IMFfEHOITIIt 1 U v . / j , 1 1 J 1 1 1 J 1 1 1 i .- L I 1 - l - L l IJi J.JLX. v l -f J w 1 M s o II 1 I i 1i i 1i i i i i i i J i i i i i 1IIV 1971 e j s o e j s o 11 j j 1 1 1 1 i i i e j s U72 s 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 1969 No quotation 1970 1971 1972 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures ii 1 1 1 1 1 ] 1 I J 1 1 - b i l l rates | ii \ UWTEO STATES TREASURY BILLS | i i 11 1 1 i 1 u 11 j i i 1 1 j Nr«M(pir« j 11 | m J* , v \ > - ] ii / 0 / w T A C A « . MM CO. PAPER CANAOtUN xX. TREASURY t l U s V b i l l r a t e d i f f e r e n t ! * l and f o r w a r d cawadww d o l l a r FORWAAO. (V*v VAvV VJX.CROSS SPREAD IN FAVi W OF CANADA owcowwt ~~covered r a t e d i f f e r : n t i a l s MMMICtfMM iURY BILLS /Vi v^ V^ YH/W j , aAA W \ / \ y /X FAVOR CJMMfM y K v/%vj 1 1 1 1 ! I II M J 1 II S 1 ! 1 1 1 1 1 1 1II D 1969 M j 1970 S D FINANCE PAPER v V v i i 1i i 1i i 1 i i M J S 1971 D FAVOe US " 1 1 1 11 1 1 1 1 1 1 M J S 1972 O Chert 1 * S B t t f E D SNOUT-TEW INTEREST RATES* - - EMMNY ijf V i k 1 jAj 1 UJL LNiAi. f V IS. - C L v ] /V M lA w - 1 1 1 M I I I ! 1 i1 I 1 I I I I I 1i m1 1 1 1 1 1 1i n 111 ii 1111 1 II - yV ^ i r — iCJ - Vai 1 M r 11111111111 - 14 PAN Vt i s. Ax CMIAAA\ 1 1 1 1 1 1 11 11 111 i i 1 i i 1 i i ! i i 1 1 1 < 11 1 1 11 11 11111111 1S6S lira * 3-month veesury bill reles tor eW coenlries «c«p( .ImpenWwere#* fete en tenfc toens end discounts) end Gefmeny(Hitertienk Loen Aete) 1372 Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cent per EURO-DOLLAR - LONDON ua. SWITZERLAND 1970 1968 * 3-month treasury bill rate for US, Switzerland -3-month deposit rate. • • 3-month rate for U S dollar depos e n London 1972 ,*11 Clwt 13 , LOMG'TERM BOND YIELDS Weekly figures Per cent per * * * * * - mo$ ( 3 ^ Vi * US. K v i US. SWITZERLA N D " I I 1 1 1 1 1 1 11 11I I1 I I 1 1 1 I 1 1 1 I 1 1 1 1 I I 1 11 1f 1 I I 1 1 1 1I I1 11 1 1 1 I I 1 1 I Ii*. - •EMIANY 1 1 1 1 1 1 1 1I I1 11 11 1 1 1 1 11 1 111 1 1 1 1 1 1 1 W * 1 1 1 1 1 1 1 1 1I 11 11 1 1 1 M 1 1 1 US. US. l 1968 . DW EURO-BONDS 1970 1971 1972 * New series for Switzerland starts 8 2-68, U S Corp. Dollar Euro-8on<ls and U S Corp DM Euro Bonds starts 12-70 # # Mew Average yield of all German PJL Bonds begins 1 7-69. * * * New series F starts 12 71 CHART 14 INDUSTRIAL STOCK INDEXES UNITED STATES I 1 Vzvx 200 /vy i 11i 11: 111 1 1, 11; 1W1 1i i 11! ! I 111 1 i I 1ill 1 1 ! 1 I I 1 11 . SWITZERLAND j ^ A / v L , f i / A , 360 Xz V " - UNITED KINGDOM V i i 1 i i 1 i i 1 i i ! i i !. i ! i i ! J i . / 240 i i ! i i 1 i i ! i i JAPANy^ 1 f v i i i i i 1i i 1 i i 360 GERMANY 240 ^CANADA/WVZ\^ I I ! i : ! : i i 1 i ! ! i . 1969 * Japan index of 2 2 5 i n d u s t r i a l and other ! i 1 1! 11 1970 stocks i i i i i ! i i ! i I 1971 1 i 1 II ! II 1972 t r a d e d on Tokyo e x c h a n g e ' * Japan index of all i n d u s t r i a l and other s t c : k s t r a d e d on t h e f i r s t s e c t i o n of the Tokyo S t o c k Exchange 1M October 25, 1972 H. 13 •k.581 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate hi Effect Since Previous Rate In Effect Since E.E.C.: Belgium France Gemany fc.o March 2, 1972 fc.5 5.75 April 6, 1972 6.0 Jan. 13, 1972 Oct. 9, 1972 3.0 Feb. 25, 1972 3.5 Feb. 5. 1972 Italy It.O April 10, 1972 4.5 Oct. Ik, 1972 Netherlands 3.0 Sept. 8, 1972 k.O March 1, 1972 Switzerland 3.75 Sept. 15, 196$ 3.0 United Kingdom 6.0 June 22, 1972 5.0 Sept. 3, 1971 Cauda k.75 Oct. 25, 1971 5.25 Feb. 24, 1971 Japan It. 25 June 2h, 1972 4.75 April 29, 1971 United States 1.50 Dec. 13, 1971 4.75 Nov. 11, 1971 July 10, 1967 ••Effective October 13, 1972, the Bank of England replaced its traditional Bank Rate with a fluctuating "minimum lending rate*' based on average Treasury bill tender rate. October 13 7.25% IV-2 LATEST FIGURES PLOTTED OH THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. |***ld i r t n s l French franc Japanese yen Lower Upper IB Lower 2A Upper 2B Lower 3A 3B 4 5A Upper Middle Lower Upper 5B Lower 1 Belgian franc Italian lire Canadian dollar A c t u a l r a t e German mark Dutch guilder German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Date tote M + 1.138 240.16 + 1.980 + 2.318 " + 1.496 " " - 0.218 101.79 + 0.+73 " + 0.034 O c t . 20 " « " " " + + + + - 2.28 2.39 2.56 3.04 0.22 0.02 n.a. " German mark U.S. dollar Swiss franc French franc O c t . 13 Gold price, U.S. dollar per ounce O c t . 20 64.94 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 O c t . 18 4.91 4.91 " " " Oct. 13 " fel: il O c t . 13 O c t . 11 O c t . 13 O c t . 13 Sept.22 + + + + 5.54 2.15 3.62 2.32 0.00 2.90 3.85 6.50 3.50 5.00 6.75 0.53 IV - 3 Chart Panel 6A Series Date Euro-S 7-Day Rale O c t . 20 Euro-S 1-month Rate 68 7A Upper Lower Upper Lower Euro-S 3-month Rale « 6.06 Euro-S 6-month Rate " 6.25 Euro-S 3-month Deposits Oct. 18 Differential + 0.60 Euro-S 3-month Deposits " 5.88 Euro-S 3-month Deposits (Adj.) « 7.35 U.S. Certificate of Deposits (Adj.) •1 Differential: on Adj. Euro-S Deposits 5.53 „ + 0.35 Euro-S 3-month Deposits Lower Differential Upper Euro-S 3-month Deposits 6.09 Local Authority Deposits (covered) 4.83 Lower >Ct. 6 - 0.98 Differential - 1.26 * c t . 20 a U.K. Treasury Bill rate Upper 4.68 6.62 Local Authority Deposit (uncovered) ( l e t . 13 7.44 Spread (+= favor London) ( l e t . 20 + 1.94 « - 2.62 3-month Forward Pound Lower 6.09 5.11 U.S. Treasuiy Bill rate 9A 98 + 1.82 Upper Sterling Certificates of Dep. 88 5.88 M on Unadj. Euro-S Deposits 8A 5.00 5.38 U.S. Certificate of Deposits 78 Rate Net Incentive (+= favor London) " - 0.68 IV - 4 Chart Panel Series IDA Upper Euro-$ Deposits (covered) Lower Differentia! *a* Dale Oct. 18 German interbank Loan rale 10B 11 Upper 7.12 + 3.36 Euro-S Deposits (coveted) 2.50 Swiss Deposit tale 3.67 Lower Differential tipper Canadian Fmanoe Paper - 1.17 Oct- 20 U.S. Treasury Bill rate 3.48 U.S. Prime Fmaw* paper (not plotted) 12A 5-13 4.68 Canadian Treasury Bill rate Second 3.76 5.13 Bill rate differential - 1.20 Forward Canadian dollar + 0*08 Thifri Net incentive on bills - 1.12 Bottom Net incentive on Finance Paper + 0.08 Upper U.K. Treasury Bill rate Oct. 20 U.S. Treasury Bill rate German Interbank Loan rate Lower Japanese Average rate Canadian Treasury Bill rate 12B 6.62 4.68 Oct. 18 7.12 August 6.896 Oct. 20 3.48 U.S. Treasury Bill rate „ 4.68 Euro-S Deposits .. 6.06 Swiss 3-month Deposit rate Oct. 13 Oct. 20 U.S. Treasury Bill rate Oct. 20 i-sT 4.68 I# IV-5 Chart Pmel Series 13 Upper Netherlands Sept. 22 6.04 Canada Oct. 11 6.77 United Stales Oct. 18 5.43 83! Oct. 13 7 Oct. 15 S.06 n.« 7.83 United Kingdom Oct. 13 9.58 U.S. Corp. Dollar Eurobonds S e r l e r f r A"** 8.00 Switzerland Middle Lower Male Date * Germany U.S. Corp. DM Euro-bands 6.47 U.S. Corp. Aaa bands 14 Upper Switzerland Germany United States Middle United Kingdom Canada Lower ** Japan United Stales « 7.19 Oct. 13 457.1 Sept. 29 297.0 Oct. 20 244.80 Oct. 13 272.63 Oct. 12 ' 270.41 7 7A9-71 Oct. 20 244.80 Oct. * Mew - Average yield of ALL Gentian Public Authorities bonds made as of banking key days. ** Beginning weak 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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