Selected Interest & Exchange Rates

(5/517) Selected Interest & Exchange Rates Weekly Series of Charts i January 29, 1990 Prepared by the FINANCIAL MARKETS SECTION DIVISION OF INTERNATIONAL FINANCE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Washington, DC. 20551

Table of Contents TABLES 1. LATEST FIGURES PLOTTED 2. DAILY CERTIFIED SPOT EXCHANGE RATES H. RELEASE CHARTS 1 SPOT EXCHANGE RATE INDICES 2 3-MONTH FORWARD EXCHANGE RATES 3. GOLD PRICE-LONDON CALL MONEY RATES 5. 3-MONTH INTEREST RATES 6 EURO-DOLLAR DEPOSIT RATES 7. SELECTED EURO-DOLLAR AND U S MONEY MARKET RATES 8. INTEREST ARBITRAGE: 3-MONTH FUNDS 9. LONG-TERM GOVERNMENT BOND YIELDS INDUSTRIAL STOCK INDICES SUBSCRIPTION RATES: Weekly $2.00 per year or $.60 each In the United States, its possessions, Canada, and Mexico; or more of the same issue to one address. $22. per year or $.55 each. Elsewhere. $30.00 per year or S 70 each. Address requests to Publications Services. Division of Administrative Services, and make payment remittance payable to the order of the Board of Governors of the Federal Reserve System m a form collectible at par in U.S. Currency.

CHART 1 SPOT EXCHANGE INDICES DOLLAR PRICES OF FOREIGN CURRENCIES AND WEIGHTED AVERAGE VALUES (THIN LINE) AVERAGES FOR WEEK ENDING WEDNESDAY RATIO SCALE MARCH 1973=0 0 FOREIGN CURRENCY PRICE OF U.S. DOLLAR BELGIAN FRANC RATIO SCALE MARCH 1973=0 0 I I I I I I I I ' I ' ' ' I I I I I I I I I I I SWISS FRANC JAPANESE YEN I I I I I ' I I ' I I I I I I I I I I I» ' I I ' U.K. POUND CANADIAN DOLLAR : I I I 1 I I DUTCH GUILDER I I I I I I I I I i I I I I I I I I GERMAN MARK 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 ITALIAN LIRA FRENCH FRANC 80 0 70 35 60 30 I I I I I I I I I I ' I ' I 1988 1990 I I I I I I I 1988 I I I I I 1990 25

CANADIAN DOLLAR CHART 2 3-MONTH FORWARD EXCHANGE RATES PREMIUM (+) OR (-) AVERAGES FOR WEEK ENDING WEDNESDAY U.K. POUND ^ - i i i I i i i I i i 1 1 1 1 1 GERMAN MARK JAPANESE YEN y \ K ~ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SWISS FRANC mm m 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DUTCH GUILDER \ " i i i 1 i i i 1 i i i I i i i 1 1 1 1 1 1 1 1 1 I I I 1 1 1 FRENCH FRANC v ' W ' V y V \ ITALIAN LIRA i i i 1 i i i 1 i i l 1 l l l 1988 1990 i i i 1 i i i 1 i i i I i i i 1988 1990

CHART 3 PRICE OF GOLD IN LONDON AVERAGES FOR WEEK ENDING WEDNESDAY U.S. DOLLARS PER FINE OUNCE 520 U.S. DOLLARS PER FINE OUNCE 520 0 0 80.5 Kg BARS AFTERNOON FIXING PRICE 80 60 60 0 0 20 20 00 00 380 380 360 360 30 30 320 1987 1988 1989 1990 320

CHART CALL MONEY RATES WEEKLY SERIES U.S. FEDERAL FUNDS FRANCE JAPAN 0 i i i l» 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 0 CANADA GERMANY I i i i I i i i I i i i ' I ' ' ' l i i i I i UNITED KINGDOM SWITZERLAND NETHERLANDS 1988 1990 1988 1990

CHARTS 3-MONTH INTEREST RATES WEEKLY SERIES U.S. CD'S FRENCH INTERBANK RATE WEIGHTED AVERAGE FOREIGN RATE 2 ' ' 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. 2 U.K. INTERBANK STERLING CANADIAN FINANCE CO. PAPER 8 6 I I I I I I I I I I I I I 1 I ' I i i i I i i i I i i i 6 GERMAN INTERBANK RATE SWISS INTERBANK RATE 2 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 0 NETHERLANDS INTERBANK RATE JAPANESE GENSAKI RATE I ' 1 I I ' ' I I I ' i i i I i i i I i i i I i i i 1988 1990 1988 1990

CHART 6 EURO-DOLLAR DEPOSIT RATES LONDON AVERAGES FOR WEEK ENDING WEDNESDAY OVERNIGHT 3-MONTH i i i I i ' i I ' i l ' ' ' I I I I I I I I I I 7-DAY 6-MONTH I I I I I ' I I I I I I I I I I I I I I I I I I 1-MONTH 1-YEAR I 1 I I I 1 I I 1 I I I I I i i l i i i l ' i i I i i i 1988 1990 1988 1990

T F T CHART 7 SELECTED EURO-DOLLAR AND U.S. MONEY MARKET RATES DIFFERENTIAL: PLUS(+), FAVORS BORROWING IN U.S. AVERAGES FOR WEEK ENDING WEDNESDAY OVERNIGHT EURO-DOLLAR DEPOSITS 3-MONTH EURO-DOLLAR DEPOSITS, FEDERAL FUNDS DASHED LINE 90-DAY CD'S DASHED LINE 1 I I I I 1 I I I L J I I I I I L J I L DIFFERENTIAL DIFFERENTIAL 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 1988 1990 1988 1990

CHART 8 INTEREST ARBITRAGE: 3-MONTH FUNDS DIFFERENTIAL: PLUS(+), INDICATES FAVOR DOLLAR ASSETS AVERAGES FOR WEEK ENDING WEDNESDAY INTERBANK STERLING COVERED LONDON CANADIAN FINANCE CO. PAPER, COVERED EURO-DOLLAR DEPOSITS DASHED LINE U.S. COMMERCIAL PAPER DASHED LINE I I I I I I I I I I I I I» I I I I I I I I I DIFFERENTIAL DIFFERENTIAL 2 x V~ w-^vvw 1 1 1 I 1! 1 I I V 1 I I 1 1 1 1 /VyA-vU ' ' I I I I I I I I I I I I I 2 INTERBANK DM COVERED FRANKFURT SWISS INTERBANK (SF) COVERED EURO-DOLLAR DEPOSITS DASHED LINE EURO-DOLLAR DEPOSITS DASHED LINE I I I I I ' ' I I ' I I ' I I DIFFERENTIAL ' I I I I I 1 1 I I I 1 I I ' 0 DIFFERENTIAL 2 1 1 1 I I 1» 1» I I 1 I I I I 1 1 1 1 I 1 I 1 I 1 I 1 1 1988 1990 1988 1990

CHART 9 LONG-TERM GOVERNMENT BOND YIELDS WEEKLY SERIES PE CENT PER ANNUM UNITED STATES CANADA PERCENT PER ANNU 8 6 I I I I I I I I I I I I I I UNITED KINGDOM i i i I i i i l i i i I i i i FRANCE 8 6 I ' I I I I I I I I I I I I SWITZERLAND I I I I I I I I I I I I I I I JAPAN 8 6 2 8 ' I < I I I I I I I I I I I I NETHERLANDS MONTHLY GERMANY I i i i I i i i l i i i 6 2 i i ' I i i i I i i i I i i i 1988 1990 I I I I I I I I I I I I I I I 1988 1990

RATIO SCALE 1986=0 175 UNITED STATES 5 0 CHART STOCK INDICES WEEKLY SERIES NETHERLANDS RATIO SCALE 1986=0 175 5 0 75 75 00 3 i i i l i i i I i i i I i i i JAPAN i» I i i i I i i i I i i i GERMANY 175 300 2 5 0 75 0 175 I I I I I I I I I I I I I SWITZERLAND i i ' I i i i l i i i I i i i FRANCE 175 5 5 0 0 75 75 175 i ' I i i i I i i i i i i,canada _ i i l i ' i I UNITED KINGDOM i I i i i 175 5 5 0 0 75 75 i i I ' i i l ' i i l i ' i ' ' I i i i l i i i I i i i 1988 1990 1988 1990

SERIES 27-Dec~89 3-Jan-90 -Jan-90 17-Jan~90 2-Jan-90 Chart 1. Spot Exchange Rates and Indices Noon buying rates (U.S. cents, weekly averages) Belgian franc 2.782 2.7896 2.8377 2.8275 2.802 Canadian dollar 86.227 86.267 86.180 86. 8.793 French franc 17.0 17.199 17.62 17.23 17.271 German mark 58.629 58.770 59.561 59.288 58.693 Italian lira 0.07833 0.0783 0.0797 0.07952 0.07883 Japanese yen 0.70075 0.69078 0.69279 0.68756 0.68530 Netherlands guilder 51.903 52.032 52.775 52.583 52.088 Swiss franc 6.575 6.155 65.28 66.297 66.059 U.K. pound 2.09 1.22.70 5.82.68 Indices, March 1973 base rates = 0 Belgian franc 9.6 9.92 111.82 111.2 1. Canadian dollar 85.9 85.98 85.89 85.86 8.51 French franc 77..33 77,. 78.69 78.51 77.83 German mark.93 5.33 7.55 6.78 5.11 Italian lira,.96 5.02 5.62 5.65 5.25 Japanese yen 183..8 180.87 181.39 180.03 179.3 Netherlands guilder 9..00 9.37 151.51..96 9.53 Swiss franc 207.75 206,.39 2.9 213.28 2 52 U.K. pound 65..56 65..21 66.62 67,.07 66.61 # Weighted average exchange value indices, Mar. 1973=0 Belgian franc.32.7 5.56 5.29 5.13 Canadian dollar 80.30 80. 79.52 79.59 78.81 French franc 70.8 71.11 71..55 71..6 71.30 German mark 170..93 171.67 172..3 171. 72 171.0 Italian lira 39..5 39.6 39.80 39,.88 39.79 Japanese yen 186.13 183.0 182.03 180,,72 181..3 Netherlands guilder.88 5.5 6..15 5,.77 5..3 Swedish krona 66.60 66.66 66..81 66,.9 66.76 Swiss franc 201.08 199..97 202..05 205.05 205..72 U.K. pound 59,.2 58.97 59..73 60..26 60..25 U.S. dollar 93.59 93..73 92..59 92..72 93..52 Chart 2. 3-Month Forward Exchange Rates, Premium or Discount Canadian dollar -3.61-3.62-3.71-3.73-3.67 French franc -2.57-3.15-3. -2.90-2.70 German mark -0..02-0.27-0.06-0.03 0.05 Italian lira -.5 -.. -.33 -,.33 -.25 Japanese yen 1.62 1,.5 1..1 1..27 1..30 Netherlands guilder -0,. -0, 9-0..59-0..6-0,.58 Swiss franc -0,.27-0. 92-1.01-1. 32-1. 26 U.K. pound -6,.15-6. 35-6.36-6,.61-6. 7 Chart 3. Gold Price in London, Afternoon Fixing U.S. dollars per fine ounce.73 398.53 03.73 13.2 11.1 Chart. Call Money Rates U.S. federal funds 8.38 8.32 8.22 8.20 ND Overnight Euro-dollar deposits 8.20 8.83 8.18 8.09 8.15 Canada.17.00..13.05.33 France.77 11.09..76.33.53 Germany 7.62 8.06 7..70 7.67 7.77 Japan 6.8 6.1 6.9 6.2 6.3 Netherlands 8.2 8.65 8,.60 8.7 8.17 Switzerland 7.29 8,.21 9. 18 8.88 8.88 United Kingdom.9..81. 91.90.81

27-Dec-89 3-Jan-90 -Jan-90 17-Jan-90 2-Jan-90 Chart 5. 3-Month Interest Rates U.S. 90-day CD's, secondary market Canadian finance paper French interbank rate German interbank rate Japanese gensaki rate Netherlands interbank rate Swiss interbank rate U.K. interbank sterling Weighted average foreign interest rate (G- Countries) 8.32 8.23 8.15 8.11 8..20.36.3.27.19.07.92 11.38 11.5 11.21 11.00 8.08 8.21 8.28 8. 8.2 5.8 5.85 5.9 6.00 6.0 8.55 8.70 8.8 8.83 8.8 8.6 8.88 9.13 9.0 9.0 15.02 15.06 15.06 15.15 15.25 9.77 9.91 9.97 9.95 9.96 Chart 6. Overnight 7-day 1-month 3-month 6-month 1-year Chart 7. Euro-Dollar Deposit Rates 8.20 9.28 8.69 8.39 8.17 8.03 8.83 9.06 8.31 8.25 8. 8.13 Selected Euro-dollar & U.S. Money Market Rates Overnight Euro-dollar deposits U.S. federal funds Differential 3-month Euro-dollar deposit U.S. 90-day CD's, secondary market Differential Chart 8. Interest Arbitrage, 3-Month Funds Euro-dollar deposit Interbank sterling (London), covered Differential U.S. commercial paper Canadian finance paper, Differential Euro-dollar deposit Interbank DM (Frankfurt), Differential Euro-dollar deposit Swiss interbank, covered Differential covered covered 8.18 8.20 8.23 8.23 8.20 8.19 8.09 8.09 8.15 8.15 8. 8.20 8.15 8.11 8.23 8.26 8.33 8.9 8.20 8.83 8. 18 8.09 8. 15 8.38 8.32 8. 22 8.20 ND -0.17 0.51-0. 0-0. ND 8.39 8.25 8. 23 8.15 8..26 8.32 8.23 8..15 8.11 8..20 0.07 0.02 0..08 0.0 0..06 8.39 8.25 8.23 8.15 8. 26 8.6 8.8 8.7 8.29 8..53-0.25-0.23-0.2-0. -0.27 8.28 8.22 8.09 8.0 8. 8.6 8.60 8.5 8.35 8.28-0.2-0.35-0.23-0.20-0.02 8.39 8.25 8.23 8.15 8.26 8.06 7.93 8.22 8.13 8.29 0.33 0.32 0. 01 0.02-0.03 8.39 8.25 8.23 8.15 8.26 8.19 7.93 8.09 8.05 8.11 0.21 0.32 0.13 0. 0.15 Chart 9. Canada France Germany Japan Switzerland United Kingdom United States Long Term Government Bond Yields 9.69 9.77 9.85 ND ND ND 9.85 9.68.05.0 7.5 7.75 7,.85 7.88 8.00 5.87 5.96 6.20 6.60 ND 5.73 5.75 5.82 5.97 ND 9.5 9.60 9.61 9.82.09 7.87 7.9 8.01 8.13 8.28 Chart. Canada France Germany Japan Netherlands Switzerland United Kingdom United States Stock Indices 131.0 133. 131.35 9..0 5..35 151. 152.32 9.51 6.95..03 8.0 115.99 1.86 113.09 9..67 2.86 217.88 211.26 205.6 20..58 9.53 111.86 8.77.92 2.,26 133.11 137.7 137.33 13. 130..35 7.17 152.69.23 7,.0 1..87 1.65 5.1 1.23 137,.37 13,,26 Indices (in order, rebased to 1986=0) are Toronto Composite, CAC General, FAZ Aktien, Tokyo SE (Topix), CBS All-General, Swiss Bank Index, Financial Times Ordinary, NYSE Composite

FEDERAL RESERVE statistical release H.(5) FOREIGN EXCHANGE RATES January 29, 1990 FOR THE WEEK ENDING JANUARY 26, 1990 The Board of Governors of the Federal Reserve System is advised that the Federal Reserve Bank of New York has certified for customs purposes the following noon buying rates in New York City for cable transfers payable in foreign currencies: COUNTRY MONETARY (CURRENCY UNITS PER DOLLAR) UNIT Jan. 22 Jan. 23 Jan. 2 Jan. 25 Jan. 26 AUSTRALIA DOLLAR 79. 77.5 76.220 75.830 76.0 AUSTRIA SCHILLING.5 11.95 11.865 11.885 11.9 BELGIUM FRANC 36.030 35.520 35.290 35.330 35.00 CANADA DOLLAR 1.1830 1.1780 1.1855 1.1905 1.1939 CHINA,P.R. YUAN.7339.7339.7339.7339.7339 DENMARK KRONE 6.6705 6.5755 6.5275 6.5335 6.55 FINLAND MARKKA.00.00 3.98 3.9900.00 FRANCE FRANC 5.8520 5.7655 5.7300 5.730 5.7520 GERMANY D. MARK 1.7225 1.6968 1.6870 1.6875 1.6933 GREECE DRACHMA 0.00 158.80 157.70 157.90 157.90 HONG KONG DOLLAR 7.85 7.85 7.8130 7.8130 7.8115 INDIA RUPEE 17.030 17.000.980.990.970 IRELAND POUND 15.95 155.0 157.00 156.85 156.55 ITALY LIRA 82.00 63. 55.25 55. 58.75 JAPAN YEN 6.3 6.09 5.32.2 3.35 MALAYSIA RINGGIT 2.7065 2.705 2.7055 2.705 2.705 NETHERLANDS GUILDER 1.905 1.98 1.9013 1.90 1.9078 NEW ZEALAND DOLLAR 61.180 60.520 59. 59. 59.280 NORWAY KRONE 6.6185 6.5580 6.52 6.5375 6.0 PORTUGAL ESCUDO 151.25 9. 8.60 8.85 8.75 SINGAPORE DOLLAR 1.8795 1.8820 1.8760 1.8775 1.8720 SOUTH AFRICA RAND 2.5690 2.50 2.5570 2.5625 2.5625 SOUTH KOREA WON 687.90 688.0 687.90 687.80 N.A. SPAIN PESETA 111.0 1.55 9.25 9.7 9.63 SRI LANKA RUPEE 0.018 0.018 0.018 0.018 0.018 SWEDEN KRONA 6.2580 6.2055 6. 6.1700 6.1800 SWITZERLAND FRANC 1.5320 1.80 1.965 1.880 1.980 TAIWAN DOLLAR 26. N.A. 26.0 26.151 N.A. THAILAND BAHT 25.800 25.800 25.760 25.7 N.A. UNITED KINGDOM POUND 3.90.90 5. 5.72 5.70 MEMO: ( UNITED STATES DOLLAR 9.29 93.28 92.85 92.80 92.92 VALUE IS U.S. CENTS **INDEX OF WEIGHTED AVERAGE EXCHANGE VALUE OF U.S. DOLLAR AGAINST CURRENCIES OF OTHER G- COUNTRIES. MARCH 1973 = 0. HEIGHTS ARE 1972-76 GLOBAL TRADE OF EACH OF THE COUNTRIES. SERIES REVISED AS OF AUGUST 1978. FOR DESCRIPTION AND BACK DATA, SEE "INDEX OF THE WEIGHTED-AVERAGE EXCHANGE VALUE OF THE U.S. DOLLAR: REVISION" ON PAGE 700 OF THE AUGUST 1978 FEDERAL RESERVE BULLETIN.