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\ 0ct+m4, W2Me.se H-O * ' ij r I / , M-fli-l • i ' v.i^ INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SEMES OF CHARTS •OMD OF GOVEMOK OF THE FEDERAL LESETVE SYSTEM TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - Spot Exchange Rates, Mayor Currencies against U.S. Dollar Chart 2A and B - 34lonth Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3AandB - 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 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. -2(^V SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U6. DOLLAR Weekly averages Above GERMAN MARK 2 .K. POUND SWISS FRANC I I DUTCH GUILDER Below 1 Above 2 FRENCH FRANC JAPANESE YEN I J 1972 * Pound floated June 23, 197c 1973 I Below I SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages At /BELGIAN FRANC / • A rate against US / ITALIAN LIRA 1 L—1 i 1 1 1 1 1 i 1 i . 1 1 1 1 1 1 1 1 | , , * * J 1972 1973 102 y CANADIAN DOLLAR 100 1 A ./ 98 V R J 96 94 1 1 1 1 1 1 1 1 1 1 1 * J S 1970 0 I I 1 I I 1 I I 1 I I I* J 1971 S D I M I I I I I I I I I I J S 1972 O 92 £ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR May 11, 1971 - Weekly averages i i i l MAY i i i I i JUNE i i JULY i I i i i l Dec 17. 1971 I AUG 1971 Financial franc i i SEPT i 1 i i OCT. i I i i NOV i I i i i DEC i i C l w t 10 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Per UJC ITALY UJL Par Mitti ITALY vs. MAY JUNE JULY AUG SEPT. 1971 OCT. NOV DEC Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Pet cent per annum PREMIUM CANADIAN DOLLAR UJC. POUND DISCOUNT- PREMIUM GERMAN DISCOUNT — DUTCH GUILDER DISCOUNT- s D 1969 S 1970 * Canadian Dollar Rate not supported by Bank of Canada D J 1971 S D M J 1972 S D Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOiiAR FRENCH NUMC DISCOUNT- 1970 24 * Devaluation Of the French franc from 4 94 to 5 55 for $ 1 0 0 | , ie/1 1972 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM V U.S. DOLLAR w r , 1970 No quotation i , , i , 1 Chart 38 3-MONTH FORWARD EXCHANGE-MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM SWISS FRANC FRENCH FRANC s D M 1969 J s 1970 'Devaluation of the French franc from 4.94 to 5.55 for $1.00 D s M 1971 D M J 1972 S D GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine ounce 80 70 60 50 40 J S S D 1969 1970 D M J 1971 s D s M 1972 D CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages I 1 1 EURO-DOLLAR DEPOSITS CALL OVERNIGHT FEDERAL FUNDS J 1 - EURO1-DOLLAR OVER FEDERAL FUNDS 1 ]I r/* \\p i/ \ R VVV i i 1 i l 1 l w W l 1 l l I I - A U T 1 1 1 1 1 1 i 1 i i 11 i i 1 i EURO-CURRENCIES Weekly averages EURO-SWISS FRANC M J S D 1969 M J S 1970 * May 10. 1971 - " N - %ed to Overnight Euro $ Deposits : WJL 1972 i 1 M Chart 58 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 y LA NETHERLANDS j I i • : ! ' l 1 ! l I i ! r IHR • V ^ V/j j \ JAPAN CANADA \ fk/V i 1 I ! I 1 ! I I i 1 1 i I I i I I 1 I I i 1M 1! i i ! i i 1 i i M France, Day to-day Money; Netherlands, Call Money, weekly average Japan, Unconditional Money; Canada, Day to day Loans, weekly average; Germany, Call Money; U K , 2 day Local Authority Deposits 11 M M Chert 6A LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Pe< cent per annum 25.50 M I I I 1 II M J 1 I I I I 1 1 I I 1 I I I I I I 1 I 1 I 1 I I I 1 1 I I I I 1 I I I I I 1 t I 1 2 S D M 1969 J S 1970 * l * a y 12/71-changed to Overnight Euro-Dollar Deposits * * J u l y l - c h a n g e d to 7-Day Euro-Dollar D M J S 1971 D M J S 1972 O LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Per cent per annum ! i 1 12 I 1 Q 10 V J \\6-MONT*1 1 I A / v ^ 1 V I V i ! ' M 1 1 ; 1969 S 1 1 1 ! 1970 i .11 i i 1 i i 1 i 1971 i 1 i i I I 1 1 1 1 1 1 1 1 1 1972 Chart 7A NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Pec cent per annum EURO-DOLLAR DEPOSIT MS. CERTIFICATE OF DEPOSIT FAVOR EURO DOLLAR DIFFERENTIAL EURO-DOLLAR OVER U.S. CERTIFICATE OF W M JJ SS DD 1969 W« J J S S 1970 D D M M J J S 1971 S D DW MJ J 1972 S D V Chart 78 NEW YORK-LONDON: COST OF VS. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Wednesday figures Per cent per annum EURO-DOLLAR DEPOSIT 1 ADJUSTED EURO-DOLLAR DEPOSIT MS. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER V U S. CERTIFICATE OF DEPOSIT ADJUSTED' M J S D 1969 M S 1970 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * A d j u s t e d for 2 0 * Marginal Reserve Requirement D S 1971 D M J 1972 D Chart M LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE /WD EOROOOUAR RATES Friday figures Par cent per COVERED FAVOR HIRE PURCHASE DIFFERENTIAL M J FAVOR EURO DOLLAR s D 1969 M J S 1970 * Hire Purchase temporarily suspended as of August 11 D M J 1971 S 0 M J 1972 S 0 LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO DOLLAR RATES Friday figures 12 EURO DOLLAR DEPOSIT 9 6 LOCAL AUTHORITY DEPOSIT 3 COVERED + 0 ! FAVOR LOCAL AUTHORITY VV-I.A + 0 3 6 FAVOR EURO-DOLLAR 1969 1970 1971 1972 9 Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Par cant par 3-MONTH TREASURY BILL RATES UJC. L0CA AUTHORITY DEPOSITS UNCOVERED NEW YORK M J S D 1969 * Plotted for comparison purposes M J 1970 S D M J 1971 S D M J 1972 S D f> INTEREST ARBITRAGE UNITED STATES AND UNITED KINGDOM Friday figures Per cent per * 4 RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING 2 + 0 2 4 6 6 10 DISCOUNT M i l l II 1111I I 1I 1 FAVOR LONDON DIFFERENTIAL 12 4 2 + 0 2 4 6 8 FAVOR NEW YORK I I I I I I I 1 1 I ' M I I I 1 M 1 I 1 I I I I 1 1 I I I I I I 1 I I I I I I I I I I I 10 Chart 10* 3-flNMfTH HMDS MTEBEST AMfTltAGE: EUfHMKNXAR - GCRtfl AM MARK FRANKFURT MTERBANK LOAN RATE VS LONDON EURO-DOLLAR RATE 14 IN TERMS OF DM 12 10 Sj J I J i — i J J—i—i—J—i J J i i 1 i i I i i 1 i i 1 i i 1 i i 1 i i J i I 1,1 i DIFFERENTIAL wvy L I No quotation FAVOR EURO-DOLLAR I 1 I I .1 I I I I \ 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 SWISS DEPOSIT RATE i 1 I i i I i i I i i 1 i i I i i I i i I i DIFFERENTIAL FAVOR EURO-DOLLAR I I I 1 1 I I I 1 I I I I 1 1 I I I I I I I I I I I I I 1I I 11 I 1 I I I I No quotation 0 Chart 11 1 - M O N T H INTEREST ARBITRAGE: UNITED STATES - CANADA riday figures Fer c w t p e r e II | I I ] I I J M BILL RATES I I | I I j I I 1 I 1 I I | I I | I I | I I 10 • CAN. FIN. CO. PAPER 6 UNITED STATES TREASURY BILLS 4 2 BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE 2 + 0 2 GROSS SPREAD M FAVOR OF CANADA COVERED RATE DIFFERENTIALS 2 TREASURY BILLS + 0 2 2 FINANCE PAPER + 0 M J S 1969 D j J 1 I_L_LL.IJJ_L. -LLL I I I I I I I I M J S 0 I I J S 0 1970 1971 K J 5 1972 0 Chert 12A SELECTED SHOUT-TERM INTEREST RATES' * - //fT Oi V - J# PAN Sn - \\Us. v j\ omada\ t a 111111111 M i i 1 i i 1 i i 1 1 1I 1 1 1 1 1 1 1 1 1 1 1968 # 1 1 1 1 1 1 1 1 11 1111 1 1 1 1 1 1 I I W70 3-month treasury bill rates for aM countries except Japan(Avera*e rat# on ben* loans and discounts) and Germanytlnterbaok Loan Rate) X' 1972 SELECTED SHORT-TERM INTEREST RATES Per cent per annum EURO DOLLAR - LONDON 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 I I 1 1 I I I I I I I I I II I 0 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 Chert 13 LONG-TERM M H O YELOS WW# figures Per cent per eeewe 1IX. - - tEMMAMY W\J\ 1 1 1 1 1 1 1 1 1 1 11 11 1 1 1 1 1 111 111 1 1 1 1 1 1 1 1 UJ. UJ. 1968 - i i 1 i i 1 i i 1 i i1 1 1 1 1 1 1 h 1 1 1 US. Monthly figures # / Aaa BOWDS >. M l EINtO-OONOS- 1970 1971 1972 Mea» series for Switzerland sterts 8-2-68, U.S. Corp. Oolier Euro-Bonds end U S Corp. OM Euro-Bonds starts 12-70 #e W e w Average yield of eU German PA. Sonde begins 1-7-69. * * * New series F starts 12-71. f CHART 14 INDUSTRIAL STOCK INDEXES 1958=100 Ratio scale — 1970 Japan index ol 225 industrial and other stocks t r a d e d on Tokyo exchange. * Japan index of all i n d u s t r i a l and other stocks t r a d e d on the first section of the Tokyo Stock Exchange. 280 H. 13 No. 578 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since In Effect Since Previous Rate 4_n M a r c h 2 . 1972 4.5 Feb. 5 r 1972 S A p r i l 6. 1975 6.0 Jan. Feb. 25. 197: 4.0 Dec. 23. 1971 E.E.C.: Belgium France Germany Italy Netherlands Switzerland United Kingdom Canada Japan 7S 3.0 4.0 Apwi 7 in, L S #v.f 13. 16, 1972 1971 3.0 Sept. d. 1972 4.0 March 1 , 1972 3.75 Sept. 15. 191 3.0 .fc.1v i n . 6.0 Jane 5.0 Sent. 1 . 1971 4.75 r w 5. 25 Feb. 24. 1971 4.25 June 24. 1972 4.75 Anr. 4 . % n~. 6.75 Not. 11. 1971 United Stales 22. 197 95, n 1071 1Q71 29, 1967 1971. IV-2 L A T E S T F I G U R E S P L O T T E D ON T H E C H A R T S —I Chart Panel Series 1A Upper Swiss franc U . K . pound French franc Japanese yen Date Rate ! i Lower IB Upper Lower 2A 2B Upper i i Lower 3A 4 Middle Lower 56 L " " „ Actual Rate German mark Swiss franc U . K . pound Dutch guilder Canadian dollar French franc Japanese yen Upper Lower 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 1 " +1.676 -0.040 101.73 " -0.724 40.329 •• +3.42 " " " «• " +3.82 -2.79 +3.52 +0.09 40.64 MA. _±6J.9_ +2.32 4-4.90 +3.05 Gold price, U.S. dollar per ounce Upper 242.68 +2.119 +2.293 " German mark U.S. dollar Swiss franc French franc 3B 5A Belgian franc Italian lire Canadian dollar German mark Dutch guilder +1.119 S e p t . 29 Actual Rate 63.97 S e p t . 27 4.70 4.99~] -0.29 S e p t . 29 2.08 1.75 S e p t . 15 S e p t . 22 S e p t . 27 4~25 6.44 3.50 Sept. 22 S e p t . 29 Aug. 25 ~47OO 4.12 0.63 —I "I IV-3 Chart Panel 6A Series Euro-S 7 - D a y R a t e 66 Rate Date 4.81 Sept. 29 Euro-S 1-month Rate 5.12 Euro-S 3-month Rate 5.88 Euro-$ 6-month Rate 7A Upper Euro-S 3-month Deposits 6.44 Sept. 27 5.38 U.S. Certificate of Deposits 7B Lower Differential Upper Euro-S 3-month Deposits 5.20 40.18 5.38 Euro-S 3-month Deposits ( A d j . ) 6.72 U.S. Certificate of Deposits (Adj.) 5.39 Lower Differential: on Adj. Euro-S Deposits Upper Euro-S 3-month Deposits Sept. 1 Sept. 8 Hire Purchase Deposits (covered) TEMPORARILY SUSPENDED -0.01 on Unadj. Euro-S Deposits 8A 8B Lower Differential Upper Euro-S 3-month Deposits Lower Differential Local Authority Deposits (covered) U.S. Treasury Bill rate 9A U.K. Treasury B i l l rate Upper 9B 1 TEMPORARILY SUSPENDED 5.56 Sept. 1 5.63 Sept. 8 4.30 Sept. 1 4.68 Sept. 8 -1.26 Sept. 1 -0.95 Sept. 8 4.48 Sept. 29 6.53 " Local Authority Deposit (uncovered) Sept. 22 7.59 Spread (+= favor London) Sept. 29 +2.05 " -2.72 3-month Forward Pound Lower +1.33 5.56 5.63 Net Incentive (+= favor London) i -0.67 i IV-4 Chart Panel Series IDA Upper Euro-) Deposits (covered) S e p t . 27 „ German Interbank Loan rate 10B Lower Differential Upper Euro-) Deposits (covered) „ 11 Differential Upper Canadian Finance Paper it Sent. 29 „ „ Bill rate differential II „ Forward Canadian dollar 12A 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 U.S. Treasury Bill rate 12B Euro-$ Deposits Swiss 3-month Deposit rate U.S. Treasury Bill rate 5.12 4.48 3.54 U.S. Prime Finance paper (not plotted) Net incentive on bills +3.29 1.50p Canadian Treasury Bill rate Third 5.38 -0.15 U.S. Treasury Bill rate Second 2.09 1 6S Swiss Deposit rate Lower Rate Date „ „ Sept. 29 „ S e p t . 27 Tilly S e p t . 29 5 . 0 0 fi -0.94 +0.20 -0.74 +0.32 6.53 4.48 5.38 7 010 3.54 „ „ 4.48 II 1.50 " 4.48 5.88 II STp IV-5 Chart Panel Series 13 Upper Netherlands Date Canada August 25 6.04 S e p t . 27 7.06 „ United States Switzerland Middle *** SIpE: Is 14 Middle 99 4.98 7.86 Q 79 8.00 U.S. Corp. DM Euro-bonds " 6.47 " 7.19 Switzerland SERIES F S e p t . 29 459.6 Germany S e p t . 22 299.0 United States S e p t . 29 248.50 " 262.08 S e p t . 21 266.82 United Kingdom Canada Lower Sap*" 5.43 U.S. Corp. Dollar Euro-bonds SERIES F August U.S. Corp. Aaa bonds Upper S e n t . 22 * Germany United Kingdom Lower Rate ** Japan United States S e p t . 23 718.93 S e p t . 29 248.50 * 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. * * * Sept. 1 Sept. 8 Sept.15 Sept.22 4.94 4.92 4.91 4.98
@FedFRASER