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Sfpfif, 13, 1972 No. 575 H-13 DM*W* t l kwm#!###! P i — w E*m## mi &##A Cmmmmmkk Stcrt— v \ " ' " U - " } ^ ) 3 S1KTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS • O M 0 0 F 6 C M M M S O F TIC FEDBMLCBBWESKTEM TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart l A a n d B - Spot Exchange Rates, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rales, 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 Charts -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 Stales-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Genuny and U.S.-Switzerland Chart 11 - Interest Arbitrage: United Stiles-Canada Chart 12A and B - Selected Short-term Interest Rales 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, whldi was published under that title through December 3 1 , 1 W . The dunges in the format and order of the charts are explained In the Tupplamrnt to the series, which accompanied Issue dated January 1 , 1 W . All series and their sources are hilly described in a Supplement dated January 1,1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent GERMAN MARK IX. POUND us SWISS FRANC HUTCH GUILDER Central rate against US JAPANESE YEN Below M S 1972 * Pound floated June 23, 1972 S D 1973 0 Chart 18 SPOT EXCHANGE RATE MAJOR CURRENCIES AGAINST US. DOLLAR M Ovv r \ / /\C~~\ rv A / ' lautm u m i i 1 I. i 1 i i 1 i i . i i 1 i i 1 i i 1 i i f 1/ CtMft 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOUAR FRANCE JAPAN MAY JUNE JULY AUG SEPT. 1971 S Financial franc OCT. NOV. KC. Chart I D EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. May 11. 1 9 7 1 - Dec 17, 1971 UX SWITZ. ITALY UK. ITALY SWITZ. MAY JUNE JULY OCT AUG. 1971 • f o r clarity the vertical scale is double that used m 1C NOV. DEC 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages 1 ' ' I ' Per cent per annum I ' ' I ' ' I 11 1 I ' I 1 ' I 1 | M | M | I ! | M | M , ! ! | CANADIAN DOLLAR r UJC. POUND DISCOUNT- Vvar 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 S 1971 D M J S 1972 D | 6 V Chart 2 8 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum 1 111 1111111 " I ' ' I " 1 u .u : i " i " i 1 'I| ' ' 1 ' ' 1 ' ' 1' ' 4 M V V "tJ A T v v v ^ - v / m ENCH FRANC * w i i l i i l n i m T i If J S O 1970 M 1,, J 1 i , 1ii S 0 M I 1971 18 1 ' Devaluation of the French franc from 4.94 to 5.55 for $1.00 • • N o quotation J S 1972 12 24 1i i 1i a 1 M I 0 U> Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UX. POUND Friday figures cent per annum 20 US. DOLLAR DISCOUNT- Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJt POUND Friday figures Per cent #er PREMIUM- FRENCH FRANC D1SCOUWT- M J S D 1969 M J S 1970 * Devaluation of the French franc from 4.94 to 5.55 for $1.00 0 M J 1971 S 0 M J 1972 s 0 »mmum GOLD PRICE IN LONDON. 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine ounce 30 70 60 50 40 M i l l I I I I I I I I I I I I I I I I I \ CHART 5 * CALL MONEY RATES 16 1 I i EURO-OOU« K FOStTS C A i l <W E W I6HT - 1 u : &W H? 12 i - | FEDO A L H M M i - 1 1 EUROi-OOLLAR OVER FEDERAL FUNDS 1 rVW/ c u W — M f r r - v " 1 11 1 11 11 1] 1 i i ! i i ! i i i i i - l i 1 w 1 J.Ji u iw * V vv 1 11 1 11 111 11 Weekly averages 1 EURO-SWISS FRANC M i i I i i I i i I i l J S D W 1970 * May io, 1971 - Changed to Overnight Euro $ Deposits J S 1971 D ' 1 1 1 1 1 1 1 1 -i—i-j— EUROCURRENCIES i i 1 i i 1i i 1 i ' H j S D 1969 - W J 1972 p Chart 5 8 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 JAPAN - " A i i ! i i 1 i i 1 i i i i 1 i i I i i 1 i i CANADA 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 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 xtM LONDON: EURO-DOLLAR DEPOSIT RATES Per cent per annum Friday figures 25.50 OVERNIGHT 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 I I • M a y 12/71—changed to Overnight Euro-Dollar Deposits * * July-1—changed to 7-Day Euro-Dollar LONDON: EURO DOLLAR DEPOSIT RATES Per cent per annum Friday figures Ik Hi rV / i 12 A \^ 10 w r A ikJ I I /v m .A vh/jz-moHTH v M 1111111111 M J S D 1969 1 1 1 II M 1 1 1 1 II J 1970 S D 1 11 11111111 M J S 1971 D / V V 1 11111 11111 M J S 1972 D Chart 7A NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES—SECONDARY MARKET Per cent per annum Wednesday figures 12 1 - M/i k / y l A/\/v v y s - U.S. c ERTIFICATE OF DEPOSIT i i i i i i i 11 i i 10 EURO-DOLLAR DEPOSIT - - • V 1 1 1 1 1 1 1 1 1 11 1i i 1i i 1 i i 1i i 1II 1 1 1 1M 1 M FAVOR EURODOLLAR DIFFERENTIAL j A wvx/ Al^ - Xjk • E l IRO-OOLLAR OVER U.S. CIERTIFICATE OF DEPOSIT i i I i i 1 i i I I i M j S D 1969 i i 1 i i 1 i i 1 i i M j S D 1970 i i 1 i i 1 i i 1 i i M J S D 1971 1 1 1 1 1 1 II M J S 1972 1 1 1 D Chart 78 NEW YORK-LONDON: COST OF U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Per cent per annum Wednesday figures EURO DOLLAR DEPOSIT ADJUSTED EURO DOLLAR DEPOSIT US. CERTIFICATE O f DEPOSIT ADJUSTED l l I I l I ' ' 1 l l *T 1 A i 1 \ • M i \M T i j v 1 ADJUSTED* n : 1 i i • ! i ! I j i 1 i s : i i D 1969 : : M ! l 1 I J 1970 * Adjusted for Reserve Requirement * * Adiusted for 10% Marginal Reserve Requirement * * * A d | u s t e d for 20% Marginal Reserve Requirement i -L i S 1 D i K i I i i i I i J i i S 1971 i i D i H i 1 i i 1 i J 1972 i 1 i i Chart 8A LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS HIRE PURCHASE AND EURO-DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT PURCHASE COVERED FAVOR H I M PURCHASE DIFFERENTIAL M FAVOR EURO DOLLAR S D 1969 M J S 1970 * Hire Purchase temporarily suspended as of August 11 D M J 1971 S D M J 1972 S D Chart 8B 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 LOCAL AUTHORITY DEPOSIT COVERED AvIf - j V ' FAVOR LOCAL AUTHORITY A A : - I DIFFERIE N T I A L M j y FAVOR 1EURO-DOLLAR i 1 1 1 1 1 1 1 1 1 1 I I S D 1969 M J 1970 1 1 1 i S D I I 1 1 1 1 1 1 1 1 1 i M J 1971 S D 1 1 1 1 1 1 1 1 1 1 1 M J S 1972 D INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 12 1 3-MONTH TREASURY B LL RATES . tfVY J \ \ r r ^ Z.J 7 10 U.K. LOCAL AUTMOWTY DEPOSITS* UNCOVERED A A f LONDON / V | \ l A r , X / l E W YORK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 M J S 0 1969 Plotted for comparison purposes M J 1970 S 0 1 1 1 1 1 1 1 1 1 1 1 M J 1971 S 1 1 1 1 1 1 M M J 1972 111 S b^> Chart 9 8 INTEREST ARBITRAGE; UNITED STATES AND UNITED KINGDOM Friday figures 1 PREMIUM i RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING | (~~\A SPREAD M FAVOR OF LONDON E f\ \J FORWARD RATI if 1 DISCOUNT i 1 1 1 1 1 1 ! 1 1 1 1 l 1 l I 1 I I 1 I 1 1 1 1 1 1 1 1 1 1 1 1 i i h i i 1 i i FAVOR LONDON DIFFERENTIAL A J v /J\T\ 1 i W a* H ^\jl a S/ ' ( p 1 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ! M J S D 1969 M J 1970 S D i i i i i 11 J 1971 i i S FAVOR NEW YORK i 11 1 1 1 1 1 1 1 1 1 i D M J 1972 S D sf Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF DM GERMAN INTERBANK LOAN RATE I No quotation \ 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates IN TERMS OF SWISS FRANCS EURODOLLAR COVERED SWISS DEPOSIT RATE i i 1 i i I i i I i ' 1 ' » I i i 1 i i I i i FAVOR ZURICH DIFFERENTIAL 2 FAVOR EURO-DOLLAR No quotation vfV Chart 11 3-MONTH INTEREST ARBITRAGE; UNITED STATES - CANADA Friday figures Nrc#mtp#r ammwrn 1 1 1 1 1 1 1 1 1 I I - BILL RATES !l | I I | 1 1 | 1 I i i | I i | M | 1 I | 1 1 UNITED STATES TREASURY BILLS V V ^ ^ C A 1. FIN. CO. PAPER CANADIAN TREASURY BILLS V . ^ SnWAV _ / W \ \ - MCMUM BILL RATE DIFFERENTIA L AND FORWARD CAN AD 1/IN DOLLAR aFORWARO R r®*6 — ^ W v ^ FT^i X X ""COVERED RATE DIFFER [NTIALS r-*— " FAVOR CANADA WRY BILLS X ^ ^ - omoum GROSS SPREAD IN FAVt M OF CANADA : X X | i i X v, W y / X - 1 1 | II «/U V V \ r \ A - \ V Y y A FAVOR U.S. - FAVOR CANADA V%vj I 1 114 1 1 1 1i i M 1969 1 1 1 1 1 1 1II j s 1970 FINANCE PAPER ^ / v / V - z y x v ^ v vv ii 1i i ! i i 1 i i 1971 FAVOR U S. I 1 1 11 1 1 11 1 1 J s 1972 SELECTED SHORT TERM INTEREST RATES* GERMANY UX I III III I I U.J. 1968 1970 • 3-month treasury bill rates for «H countries except JapentAverage rate on bank loans aad discounts) and Germanytleterba* Loan *ale) 1972 v t^ Chart 12B SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO DOLLAR - LONDON 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 YIELDS Weekly figures Pw cent per e e e i w NETHERLANDS CANADA SWITZERLAND UM. ». DOLLAR EURO-BONOS US. us. US. 1968 1969 OH EURO-BONDS 1970 1971 1972 • New series for Switzerland starts 6-2-68. 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. * * * New series F starts 12 71. •qfr CHART 14 1958=100 INDUSTRIAL STOCK INDEXES Ratio scale 280 UNITED STATES 200 1 111 11 11I 11 i i 1iW i i 1M l l 1 111 I I 1 1I A 111111 480 j\ ~ 111 M ^ a - SWITZERLAND z z r v V V „ 360 V - \ UNITED KINGDOM f J i i 1i i 1 i i 1i i i i 1 i i 1 i i 1i i i 11 i i I i i I i i 240 i i 1 i i 1i i 1 i i J 703 16 160 - JAPAN/ I y — y . 360 : GERMANY 240 V CANADA 11111111111 1969 i i l i i l i i 1i i 1970 \ j 1 11 11111111 1971 i i 1 i i 1i i 1 i i * Japan index of 225 industrial and other stocks traded on Tokyo exchange. * * Japan index of all industrial and other stocks traded on the first section of the Tokyo Stock Exchange. 1972 H. 13 No. 5 7 5 Country IV. S E L E C T E D C E N T R A L BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since 4_n March 2. 197: 4.5 Feb. 5 . 1972 S_ 7 5 Aorll 6. 1973 6.0 Jan. 13. 1972 3.0 Feb. 25. 197: 4.0 Dec. 2 3 . 1971 E.E.C.: Belgium France Germany Italy Netherlands Switzerland United Kingdom Canada Japan United States 4.0 Ap-41 m 101 16, 1Q71 3.0 Sept. 6 f 1972 4.0 March 1, 1972 3.75 Sept. 15. 19* 3.0 J u l v 10. 1467 6.0 Jane 22. 197 5.0 Sent. 1 . 1971 4- 75 r w 1071 5.25 Feb. 2 4 . 1971 4.25 June 24. 1972 4.75 Apr. 2 9 . 1971 4.75 #*v. 11. 1971 4.50 95 • TWr. -L3_1SZ1 . L 5 rv-t- IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series Date 1A Upper Swiss franc U.K. pound A c t u a l R a t e French franc Japanese yen Sept. 8 Lower IB Upper Belgian franc Italian lire Canadian dollar German mart Dutch guilder Lower 2B Upper Lower 3B 5A Upper Middle Lower 56 Actual Rate Gold price, U.S. dollar per ounce 4 Upper Lower i | " " German mark U.S. dollar Swiss franc French franc 3A " II German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen 2A " 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 " " " „ " " " " «• " Sept. 8 " ii || A u g . 30 Sept. 6 §?if Sept. 8 " Sept. 1 " Sept. 6 , a Rate +1.591 244.83 +2.274 +2.272 +2.044 40.050 101.65 +1.098 40.606 +3.69 +4.58 -2.65 +4.14 +0.02 +0.91 N.A. +6.16 +2.36 +5.39 +3.19 67.04 4.46r 5-13 lS*7Ar 1.10 0.25 4.25 6.50 3.44 3 62 5,p6 Ang" f , hi A u g . 25 0.63 IV - 3 Chart Panel 6A 66 7A Upper Rate Series Date Euro-$ 7 - D a y R a t e Sept. 8 4.75 Euro-S 1-month Rate " 5.38 Euro-$ 3-month Rate " 5.56 Euro-S 6-month Rate II Euro-$ 3-month Deposits 6.31 5.56 Sent. 6 U.S. Certificate of Deposits 7B Lower Differential ft Upper Euro-S 3-month Deposits „ Euro-S 3-month Deposits (Adj.) ii 8B 5.56 6.95 " 5.37 Lower Differential: on Adj. Euro-S Deposits " +1.58 Upper Euro-S 3-month Deposits ii AUg. 11 Ii •KM? Hire Purchase Deposits (covered) i.1f- i t TEMPORARILY SUSPENDED Lower Differential TEMPORARILY SUSPENDED Upper Euro-S 3-month Deposits Local Authority Deposits (covered) Lower Differential U.S. Treasury Bill rate 9A U.K. Treasury Bill rate 9B +0.58 U.S. Certificate of Deposits (Adj.) on Unadj. Euro-S Deposits 8A 4.98 Upper Lower S $3: II AUg. 11 A<$: i t f Sept. 8 4.65 =:|f " 6.26 Local Authority Deposit (uncovered) Sept. 1 7.50 Spread (+= favor London) Sept. 8 +1.61 3-month Forward Pound » -2.61 Net Incentive (+= favor London) " -1.00 IV-4 Chart Panel 10A Upper Series Euro-* Deposits (covered) Date Sept. 6 German Interbank Loan rate 10B 11 1.86 5.19 Lower Differential Upper Euro-* Deposits (covered) 0.95 Swiss Deposit rate 1.50p Lower Differential Upper Canadian Finance Paper +3.33 +0.55 Sect. 8 Second 5.25 U.S. Treasmy Bill rate 4.65 Canadian Treasmy Bill rate 3.46 U.S. Prime Finance paper (not plotted) 12A Rate 4.75 Bill rate differential -1.19 Forward Caradian dollar +0.06 Third Net incentive on bills -1.13 Bottom Net incentive on Finance Paper +0.56 Upper U.K. Treasury Bill rate 6.26 U.S. Treasury Bill rate 4.65 German Interbank Loan rate Lower Sept. 6 5.19 Japanese Average rate July 7.010 Canadian Treasury Bill rate Sept. 8 3.46 U.S. Treasury Bill rate 12B Euno-$ Deposits Swiss 3-month Deposit rate U.S. Treasury Bill rate || „ „ " 4.65 5.56 1.50p 4.65 IV-5 Chart 13 Panel Upper Series Rate Date A u g . 4 A u g . . 11 A u g . 18 A u g . 22 Netherlands Canada Sept. 6 7.29 A u g . 18 A u g . 25 5.34 4.97 4.93 Aug. 15 7.89 1 9.60 United States " Switzerland Middle * Germany United Kingdom Lower U.S. Corp. DM Euro-bonds U.S. Corp. Aaa bonds 14 Upper Switzerland Germany United States Middle United Kingdom Canada Lower Sept. U.S. Corp. Dollar Euro-bonds o „ SeriesP ** Japan United States Seriefi N.A. 6.11 July N.A 6.0 8.07 F 6.66 August Sept. 7.19 1 465.0 Aug. 31 307.4 Sept. 8 251.22 ft Aug. 285.64 31 272.56 2 703.16 Sept. 8 251.22 Sept. * 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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