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 GERMAN MARK Above 2.K. POUND SWISS FRANC Below I I 1 DUTCH GUILDER Above 2 FRENCH FRANC JAPANESE YEN Below I I I * Pound floated June 23, 197c J 1972 1973
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 i 1 1972. 1 1 1 1 1 1 1 1,, * * J 1973 CANADIAN DOLLAR y 102 100 1 A./ J V R 98 96 94 1 1 1 1 1 1 1 1 1 1 1 I I 1 I I 1 I I 1 I I I I I I I I I I I I I * J S 0 I* J S D M J S O 1970 1971 1972 92
SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR May 11, 1971 - Dec 17. 1971 Weekly averages i i i l i i i I i i i i I i i i l I i i i 1 i i i I i i i I i i i i i MAY JUNE JULY AUG SEPT OCT. NOV DEC 1971 Financial franc
Clwt 10 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Per UJC ITALY UJL ITALY Par Mitti vs. MAY JUNE JULY AUG SEPT. OCT. 1971 NOV DEC
Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Pet cent per annum PREMIUM CANADIAN DOLLAR UJC. POUND PREMIUM GERMAN DISCOUNT DUTCH GUILDER DISCOUNT- DISCOUNT- s D S D J S D M J S D 1969 1970 1971 1972 * Canadian Dollar Rate not supported by Bank of Canada
Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOiiAR FRENCH NUMC DISCOUNT-, 1970 ie/1 1972 24 * Devaluation Of the French franc from 4 94 to 5 55 for $100
3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM V U.S. DOLLAR w r, i,, i, 1 No quotation 1970
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 J s D M s D M J S D 1969 1970 1971 1972 'Devaluation of the French franc from 4.94 to 5.55 for $1.00
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 D S D M J s D M s D 1969 1970 1971 1972
CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages I 1 1 EURO-DOLLAR DEPOSITS CALL OVERNIGHT - 1 R VVV FEDERAL FUNDS - EURO 1-DOLLAR OVER FEDERAL FUNDS 1 ]/\/\ Ir*\pi W J w A WJL : UT i i 1 i l 1 l l 1 l l I I 1 1 1 1 1 1 i 1 i i 11 i i 1 i i 1 M EURO-CURRENCIES Weekly averages EURO-SWISS FRANC M J S D M J S 1969 1970 * May 10. 1971 - "N- %ed to Overnight Euro $ Deposits 1972
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!! IHR V ^ JAPAN r V/j \ CANADA j \ fk/v i 1 I! I 1! II i 1 1 i II i II 1 II i 1 M 1! i i! i i 1 i i M 11 M 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
Chert 6A LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures 25.50 Pe< cent per annum M I I I 1 II 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 M J S D M J S D M J S D M J S O 1969 1970 1971 1972 *l*ay 12/71-changed to Overnight Euro-Dollar Deposits **Julyl-changed to 7-Day Euro-Dollar
LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures! Per cent per annum i 1 I 1 Q 12 10 V J \\6-MONT* 1 1 I A / v ^ 1 I V V i! ' M 1 1 ; S 1 1 1! i.11 i i 1 i i 1 i i 1 i i I I 1 1 1 1 1 1 1 1 1 1969 1970 1971 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 DIFFERENTIAL FAVOR EURO DOLLAR EURO-DOLLAR OVER U.S. CERTIFICATE OF M W J SS DD W«J J S S D D M M J J S S D D W M J J S 1969 1970 1971 1972 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 M S D S D M J D 1969 1970 1971 1972 * Adjusted for Reserve Requirement ** Adjusted for 10% Marginal Reserve Requirement ***Adjusted for 20* Marginal Reserve Requirement
Chart M LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE /WD EOROOOUAR RATES Friday figures Par cent per COVERED FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURO DOLLAR M J s D M J S D M J S 0 M J S 0 1969 1970 1971 1972 * Hire Purchase temporarily suspended as of August 11
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 COVERED 3 + 0! FAVOR LOCAL AUTHORITY VV-I.A + 0 3 6 FAVOR EURO-DOLLAR 9 1969 1970 1971 1972
Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Par cant par 3-MONTH TREASURY BILL RATES UJC. L0CA UNCOVERED AUTHORITY DEPOSITS NEW YORK M J S D M J S D M J S D M J S D 1969 1970 1971 1972 * Plotted for comparison purposes
f> INTEREST ARBITRAGE UNITED STATES AND UNITED KINGDOM Friday figures Per cent per * RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING 4 2 + 0 2 4 6 6 10 DISCOUNT DIFFERENTIAL M i l l II 1 1 1 1 I I 1 I 1 FAVOR LONDON 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 IN TERMS OF DM 14 12 10 Sj J I J i ij 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 FAVOR EURO-DOLLAR L I I 1 I I.1 I I I I No quotation
\ 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 1 I I 1 1 I 1 I I I I No quotation
Chart 11 0 1 - M O N T H INTEREST ARBITRAGE: UNITED STATES - CANADA riday figures II I I ] I I J M I I I I j I I 1 I 1 I I I I I I I I BILL RATES Fer cwtpere 10 UNITED STATES TREASURY BILLS CAN. FIN. CO. PAPER 6 4 2 BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE 2 + 0 GROSS SPREAD M FAVOR OF CANADA 2 COVERED RATE DIFFERENTIALS TREASURY BILLS 2 + 0 2 FINANCE PAPER 2 + 0 j J 1 I_L_LL.IJJ_L. -LLL I I I I I I I I M J S D M J S 0 I I J S 0 K J 5 0 1969 1970 1971 1972
Chert 12A SELECTED SHOUT-TERM INTEREST RATES' * - Oi V v \\ //ft Sn J# PAN U s. j\ omada\ t a X' - - 111111111 M ii 1 i i 1 i i 1 1 11111111111 I 1 1 1 1 1 1 1 1 1111111111II 1968 W70 # 3-month treasury bill rates for am countries except Japan(Avera*e rat# on ben* loans and discounts) 1972 and Germanytlnterbaok Loan Rate)
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 1972 * 3-month treasury bill rate for U.S., Switzerland -3-month deposit rate ** 3-month rate for U S dollar deposits in London
Chert 13 LONG-TERM MHO YELOS WW# figures Per cent per eeewe - - 1 IX. temmamy W\J\ / - 1 1 1 1 1 1 1 11111 11 1 1 1 1 1 11111111111 1 1 1 i i 1 i i 1 i i 1 i i 1 1 1 1 1 1 1 h 1 1 1 Monthly figures US. UJ. 1 Aaa BOWDS UJ. >. Ml EINtO-OONOS- 1968 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 Wew 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 280 1970 Japan index ol 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.
H. 13 No. 578 IV. SELECTED CENTRAL BANK DISCOUNT RATES Country Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium France Germany Italy Netherlands 4_n March 2. 1972 4.5 Feb. 5 r 1972 S 7S April 6. 1975 6.0 Jan. 13. 1972 3.0 Feb. 25. 197: 4.0 Dec. 23. 1971 4.0 Apwi in, 7 L S #v.f 16, 1971 3.0 Sept. d. 1972 4.0 March 1, 1972 Switzerland United Kingdom 3.75 Sept. 15. 191 3.0.fc.1v in. 1967 6.0 Jane 22. 197 5.0 Sent. 1. 1971 Canada Japan 4.75 r w 95, 1071 5. 25 Feb. 24. 1971 4.25 June 24. 1972 4.75 Anr. 29, 1971. United Stales 4.% n~. n 1Q71 6.75 Not. 11. 1971
IV-2 LATEST FIGURES PLOTTED ON THE CHARTS! Chart Panel Series Date i 1A Upper Swiss franc Sept. 29 +1.119 U.K. pound Actual Rate " 242.68 Lower French franc " +2.119 Japanese yen " +2.293 1 IB Upper Belgian franc +1.676 Italian lire " -0.040 Lower Canadian dollar Actual Rate " 101.73 German mark -0.724 Dutch guilder " 40.329 Rate I 2A German mark +3.42 Swiss franc " +3.82 U.K. pound " -2.79 2B Upper Dutch guilder «+3.52 i Canadian dollar " +0.09 i French franc 40.64 Lower Japanese yen MA. 3A 3B German mark U.S. dollar Swiss franc French franc _±6J.9_ +2.32 4-4.90 +3.05 I "I 4 Gold price, U.S. dollar per ounce 63.97 L 5A Upper Middle Lower Overnight Euro-S deposits Sept. 27 Federal Funds Differential Euro-currencies Euro DM Euro Swiss Fr. 56 Upper Japan, Unconditional Money U.K., 2-day Local Author. Deps. Canada, Day-to-day Loans Lower France, Day-to-Day Money Germany, Call Money Netherlands Call Money Sept. 29 Sept. 15 Sept. 22 Sept. 27 Sept. 22 Sept. 29 Aug. 25 4.70 4.99~] -0.29 2.08 1.75 4~25 6.44 3.50 ~47OO 4.12 0.63
IV-3 Chart Panel Series Date Rate 6A Euro-S 7-Day Rate Sept. 29 4.81 Euro-S 1-month Rate 5.12 66 Euro-S 3-month Rate 5.88 Euro-$ 6-month Rate 6.44 7A Upper Euro-S 3-month Deposits Sept. 27 5.38 U.S. Certificate of Deposits 5.20 Lower Differential 7B Upper Euro-S 3-month Deposits Euro-S 3-month Deposits (Adj.) U.S. Certificate of Deposits (Adj.) Lower Differential: on Adj. Euro-S Deposits on Unadj. Euro-S Deposits 8A Upper Euro-S 3-month Deposits Hire Purchase Deposits (covered) Lower Differential 8B Upper Euro-S 3-month Deposits Local Authority Deposits (covered) Lower Differential Sept. 1 Sept. 8 40.18 5.38 6.72 5.39-0.01 +1.33 5.56 5.63 TEMPORARILY SUSPENDED TEMPORARILY SUSPENDED Sept. 1 5.56 Sept. 8 5.63 Sept. 1 4.30 Sept. 8 4.68 Sept. 1-1.26 Sept. 8-0.95 9A U.S. Treasury Bill rate Sept. 29 4.48 U.K. Treasury Bill rate " 6.53 Local Authority Deposit (uncovered) Sept. 22 7.59 9B Upper Spread (+= favor London) Sept. 29 +2.05 3-month Forward Pound " -2.72 1 Lower Net Incentive (+= favor London) i -0.67 i
IV-4 Chart Panel Series Date Rate IDA Upper Euro-) Deposits (covered) Sept. 27 2.09 German Interbank Loan rate 5.38 Lower Differential +3.29 10B Upper Euro-) Deposits (covered) 1 6S Swiss Deposit rate it 1.50p Lower Differential 11 Upper Canadian Finance Paper -0.15 Sent. 29 5.12 U.S. Treasury Bill rate 4.48 Canadian Treasury Bill rate 3.54 U.S. Prime Finance paper (not plotted) 5.00 fi Second Bill rate differential II -0.94 II Forward Canadian dollar +0.20 Third Net incentive on bills -0.74 Bottom Net incentive on Finance Paper +0.32 12A Upper U.K. Treasury Bill rate Sept. 29 6.53 U.S. Treasury Bill rate 4.48 Lower German Interbank Loan rate Japanese Average rate Canadian Treasury Bill rate Sept. 27 5.38 Tilly 7 010 Sept. 29 3.54 U.S. Treasury Bill rate 4.48 12B Euro-$ Deposits 5.88 Swiss 3-month Deposit rate II 1.50 U.S. Treasury Bill rate " 4.48
STp IV-5 Chart Panel Series Date Rate 13 Upper Netherlands Middle August 25 6.04 Canada Sept. 27 7.06 United States 5.43 Switzerland *** * Germany United Kingdom Sent. 22 4.98 7.86 SIpE: Is Sap*" 99 Q 79 Lower U.S. Corp. Dollar Euro-bonds SERIES F August 8.00 U.S. Corp. DM Euro-bonds SERIES F " 6.47 U.S. Corp. Aaa bonds " 7.19 14 Upper Switzerland Sept. 29 459.6 Germany Sept. 22 299.0 United States Sept. 29 248.50 Middle United Kingdom " 262.08 Canada Sept. 21 266.82 Lower ** Japan Sept. 23 718.93 United States Sept. 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 4.94 Sept. 8 4.92 Sept.15 4.91 Sept.22 4.98