Foreign Exchange Market

Chapter Outline
 Function and Structure of the FOREX Market
 The Spot Market
 The Forward Market
 Chapter Outline
 Function and Structure of the FOREX Market
 FX Market Participants
 The Spot Market
 The Forward Market

.
 Chapter Outline
 Function and Structure of the FOREX Market
 The Spot Market
 Spot Rate Quotations
 The Bid-Ask Spread
 Spot FX Trading
 Cross Exchange Rate Quotations
 The Forward Market
 Chapter Outline
 Function and Structure of the FOREX Market
 The Spot Market
 The Forward Market
 Forward Rate Quotations
 Long and Short Forward Positions
 Forward Cross-Exchange Rates

.
 Foreign Exchange Market-Defined
 Foreign exchange means the money of a foreign country; that is foreign country
bank balances,cheques,drafts and banknotes.
 A foreign exchange transaction is an agreement between a buyer and a seller that a
fixed amount of currency will be delivered for some other currency at a specified
rate.
 That is the market where one currency is traded for another.
 Huge Market
 Foreign exchange market:Avg traded value exceeds $1.9 trillion per day and
includes all of the currencies of the world
 Competitive and Efficient
 Many Participants

 Large Commercial Banks

 Foreign Exchange Brokers
 Multinational Corporations
 Central Banks
 General Features
 The Exchange Market
 All over the globe
 24 hours a day
 Most transactions are channelized through the world-wide
interbank market-the market where banks trade with
each other(multiples of $1Million US or equivalent in
transaction size)
 The client or retail market(specific ,small amount)
• Individuals and Firms
• Speculators and arbitragers
• Foreign exchange brokers
• Central Bank and treasuries
 General Features
 The Foreign Exchange Market
 an electronically linked network of banks, foreign
exchange brokers and dealers who bring together buyers
and sellers of currencies
 Historically
• Telephone
• Telex
 Today
• Electronically Brokering
 Financial Centres
 London
 New York
 Tokyo
 Zurich
 Frankfurt
 Hong Kong
 Singapore
 Paris
 Sydney
spanning most time zones
 Factors For Development
 Growth in International Trade
 Regulation and control for cross-border capital
flows and exchange rates have decreased.
 Huge cross-border FDI
 International portfolio investments
 Arbitrage
 Speculation
 Hedging
 Exchange Rate
 The rate at which one currency is traded for
another currency.
 FOREX Market Participants
 Correspondent Banking Relationships
 FOREX Market Participants
 The FOREX market is a two-tiered market:
 Interbank Market (Wholesale)
 About 700 banks worldwide stand ready to make a market in
Foreign exchange.
 Nonbank dealers account for about 20% of the market.

 Client Market (Retail)

 Market participants include international banks,
their customers, nonbank dealers, FOREX
brokers, and central banks.
 Correspondent Banking Relationships
 Large commercial banks maintain demand deposit
accounts with one another which facilitates the efficient
functioning of the forex market.
 International commercial banks communicate with one
another with:
 SWIFT: The Society for Worldwide Interbank Financial
Telecommunications.
 CHIPS: Clearing House Interbank Payments System
 ECHO Exchange Clearing House Limited, the first global
clearinghouse for settling interbank FOREX transactions.

.
 The Spot Market
 Spot Rate Quotations
 The Bid-Ask Spread
 Cross Rates
 Spot market
 The spot market or cash market is a commodities or securities
market in which foreign exchange are bought and sold and
delivered immediately.
 Spot Forex
• The spot foreign exchange market has a 2 day delivery
date(excluding holidays of buyer or seller), originally due to the
time it would take to move cash from one bank to another.
 Denoted by S(.) where S is the relationship between 2 currencies
,e.g. S(Rs/$)=Rs 48.10/$ means
 1 dollar = Rs.48.10
(therefore market for purchase or sale of currencies for immediate
delivery is called the spot market)
 Quotations at The Foreign Exchange Market

 A quotation is the amount of a currency necessary

to buy or sell a unit of another currency.
 Expressed in currency terms it is called outright rate
e.g. S(Rs./$)=Rs. 48.10 is an outright rate between
Rs. and $
 Quotes=‘buy’ and ‘sell’ OR ‘bid’ and ‘ask’ rates
 Example:-
Buying Rs.35.10/$ Selling 36.35/$
 Direct and Indirect Quotes
 Direct Quote: A unit of foreign currency quoted in terms
of domestic currency.
Example:-
At New York exchange market the deutsche mark(DM)
is quoted as:
Spot(bid) =$2.4000/DM
Spot(ask) =$2.4017/DM
 Indirect Quote: A unit of domestic currency quoted in
terms of foreign currency.
Example:
London foreign Exchange Market
Spot(bid)=$3.0201/BP Spot(Ask)=$3.0180/BP
 Relationships Between Bid and Ask
prices of the currencies
 There are two sides of all quotes:
 Buy and sell(buy dollars against Rs. Sell dollars
for Rs.)
 Example: PNB Spot(Rs./$)(bid/ask)=
Rs. 48.0010/48.0015 /$
 Spread
 Ask and Bid differential is called Spread.
 When quotes are direct:

 Example:
Spread bid price of dollar at spot S(Rs./bid$)=35.7621
and the ask price is S(Rs./Ask$)=35.8024
Therefore the spread is ?
Rs.0.0403
 Spot Rate Quotations
Currency
Wednesday, January 8, 1997 U.S. $ equiv . per U.S. $
Country W ed. Tues. W ed. Tues.
E XCH A N GE R A T E S
The New York foreig n exchang e selling rates below apply to
trading among banks in amounts of $1 million and more, as q uoted
at 4 p.m. Eastern time by Dow Jones Telerate Inc. and other sources.
Japan (Yen)
30-Day Forward
90-Day Forward
180-Day Forward
.008639
.008676
.008750
.008865
.008681
.008718
.008791
.008907
115.75
115.26
114.28
112.80
115.20
114.71
113.76
112.28
The direct
Retail transactions provide fewer units of foreig n currency per Jordan (Dinar) 1.4075 1.4075 .7105 .7105
dollar.

Country
U.S. $ equiv .
W ed. Tues.
Currency
per U.S. $
W ed. Tues.
Kuwait (Dinar)
Lebanon (Pound)
M alaysia (Ring g it)
M alta (Lira)
3.3367
.0006445
.4018
2.7624
3.3389
.0006445
.4002
2.7701
.2997
1551.50
2.4885
.3620
.2995
1551.50
2.4990
.3610
quote for
Argentina (Peso) 1.0012 1.0012 .9988 .9988 M exico (Peso) .... .... .... ....
Australia (Dollar)
Austria (Schilling )
Bahrain (Dinar)
Belgium (Franc)
.7805
.09043
2.6525
.03080
.7902
.09101
2.6525
.03105
1.2812
11.058
.3770
32.470
1.2655
10.988
.3770
32.205
Floating rate
Netherland (Guilder)
New Zealand (Dollar)
Norway (Krone)
.1278
.5655
.7072
.1540
.1277
.5699
.7106
.1548
7.8220
1.7685
1.4140
6.4926
7.8330
1.7547
1.4073
6.4599
British
Brazil (Real) .9607 .9615 1.0409 1.0401 Pakistan (Rupee) .02529 .02529 39.540 39.540
Britain (Pound)
30-Day Forward
90-Day Forward
180-Day Forward
1.6880
1.6869
1.6843
1.6802
1.6946
1.6935
1.6910
1.6867
.5924
.5928
.5937
.5952
.5901
.5905
.5914
.5929
Peru (new Sol)
Philippines (Peso)
Poland (Zloty)
Portugal (Escudo)
Russia (Ruble) (a)
.3814
.03800
.3460
.006307
.0001787
.3840
.03802
.3475
.006369
.0001788
2.6218
26.318
2.8900
158.55
5595.00
2.6039
26.300
2.8780
157.02
5594.00
pound is:
Canada (Dollar) .7399 .7370 1.3516 1.3568
30-Day Forward .7414 .7386 1.3488 1.3539 Saudi Arabia (Riyal) .2666 .2667 3.7503 3.7502
90-Day Forward .7442 .7413 1.3437 1.3489 Singapore (Dollar) .7116 .7124 1.4053 1.4037
180-Day Forward .7479 .7450 1.3370 1.3422 Slov ak Rep. (Koruna) .03259 .03259 30.688 30.688
Chile (Peso)
China (Renminbi)
Colombia (Peso)
Czech. Rep (Krouna)
.002352
.1201
....
.002356
.1201
....
425.25
8.3272
.0009985 .0009985 1001.50 1001.50
....
424.40
8.3276
....
South Africa (Rand)
South Korea (Won)
Spain (Peseta)
Sweden (Krona)
.2141
.001184
.007546
.1431
.2142
.001184
.007603
.1435
4.6705
844.75
132.52
6.9865
4.6690
844.65
131.53
6.9697
£1 = $1.688
Commercial rate .03662 .03677 27.307 27.194 Switzerland (Franc) .7334 .7387 1.3635 1.3537
Denmark (Krone) .1663 .1677 6.0118 5.9633 30-Day Forward .7357 .7411 1.3593 1.3494
Ecuador (Sucre) .... .... .... .... 90-Day Forward .7401 .7454 1.3511 1.3416
Floating rate .0002766 .0002787 3615.00 3587.50 180-Day Forward .7470 .7523 1.3386 1.3293
Finland (M arkka) .2121 .2135 4.7150 4.6841 Taiwan (Dollar) .03638 .03637 27.489 27.493
France (Franc) .1879 .1893 5.3220 5.2838 Thailand (Baht) .03902 .03906 25.625 25.605
30-Day Forward .1882 .1896 5.3126 5.2741 Turkey (Lira) .00000911 .00000915 109755.00 109235.00
90-Day Forward .1889 .1903 5.2935 5.2558 United Arab (Dirham) .2723 .2723 3.6720 3.6720
180-Day Forward .1901 .1914 5.2617 5.2243 Uruguay (New Peso) .... .... .... ....
Germany (M ark) .6352 .6394 1.5744 1.5639 Financial .1145 .1145 8.7300 8.7300
30-Day Forward .6364 .6407 1.5714 1.5607 Venezuela (Bolivar) .002098 .002096 476.70 477.12
90-Day Forward .6389 .6432 1.5652 1.5547 ---
180-Day Forward .6430 .6472 1.5552 1.5450 SDR 1.4315 1.4326 .6986 .6980
Greece (Drachma) .004049 .004068 246.98 245.80 ECU 1.2308 1.2404 .......... ...........
Hong Kong (Dollar) .1292 .1292 7.7390 7.7390
Hungary (Forint) .006139 .006164 162.89 162.23 Special Drawing Rig hts (SDR) are based on exchang e rates for
India (Rupee) .02787 .02786 35.875 35.890 the U.S., German, British, French, and Japanese currencies. Source:
Indonesia (Rupiah) .0004233 .0004233 2362.15 2362.63 International Monetar y Fund.
Ireland (Punt) 1.6664 1.6714 .6001 .5983 European Currency Unit (ECU) is based on a basket of community
Israel (Shekel) .3079 .3085 3.2474 3.2412 currencies.
Italy (Lira) .0006483 .0006510 1542.50 1536.00 a-fixing , Moscow Interbank Currency Exchang e.

.
 Spot Rate Quotations
Currency
Wednesday, January 8, 1997 U.S. $ equiv . per U.S. $
Country W ed. Tues. W ed. Tues.
E XCH A N GE R A T E S
The New York foreig n exchang e selling rates below apply to
trading among banks in amounts of $1 million and more, as q uoted
at 4 p.m. Eastern time by Dow Jones Telerate Inc. and other sources.
Japan (Yen)
30-Day Forward
90-Day Forward
180-Day Forward
.008639
.008676
.008750
.008865
.008681
.008718
.008791
.008907
115.75
115.26
114.28
112.80
115.20
114.71
113.76
112.28
The indirect
Retail transactions provide fewer units of foreig n currency per Jordan (Dinar) 1.4075 1.4075 .7105 .7105
dollar.

Country
U.S. $ equiv .
W ed. Tues.
Currency
per U.S. $
W ed. Tues.
Kuwait (Dinar)
Lebanon (Pound)
M alaysia (Ring g it)
M alta (Lira)
3.3367
.0006445
.4018
2.7624
3.3389
.0006445
.4002
2.7701
.2997
1551.50
2.4885
.3620
.2995
1551.50
2.4990
.3610
quote for
Argentina (Peso) 1.0012 1.0012 .9988 .9988 M exico (Peso) .... .... .... ....
Australia (Dollar)
Austria (Schilling )
Bahrain (Dinar)
Belgium (Franc)
.7805
.09043
2.6525
.03080
.7902
.09101
2.6525
.03105
1.2812
11.058
.3770
32.470
1.2655
10.988
.3770
32.205
Floating rate
Netherland (Guilder)
New Zealand (Dollar)
Norway (Krone)
.1278
.5655
.7072
.1540
.1277
.5699
.7106
.1548
7.8220
1.7685
1.4140
6.4926
7.8330
1.7547
1.4073
6.4599
British
Brazil (Real) .9607 .9615 1.0409 1.0401 Pakistan (Rupee) .02529 .02529 39.540 39.540
Britain (Pound)
30-Day Forward
90-Day Forward
180-Day Forward
1.6880
1.6869
1.6843
1.6802
1.6946
1.6935
1.6910
1.6867
.5924
.5928
.5937
.5952
.5901
.5905
.5914
.5929
Peru (new Sol)
Philippines (Peso)
Poland (Zloty)
Portugal (Escudo)
Russia (Ruble) (a)
.3814
.03800
.3460
.006307
.0001787
.3840
.03802
.3475
.006369
.0001788
2.6218
26.318
2.8900
158.55
5595.00
2.6039
26.300
2.8780
157.02
5594.00
pound is:
Canada (Dollar) .7399 .7370 1.3516 1.3568
30-Day Forward .7414 .7386 1.3488 1.3539 Saudi Arabia (Riyal) .2666 .2667 3.7503 3.7502
90-Day Forward .7442 .7413 1.3437 1.3489 Singapore (Dollar) .7116 .7124 1.4053 1.4037
180-Day Forward .7479 .7450 1.3370 1.3422 Slov ak Rep. (Koruna) .03259 .03259 30.688 30.688
Chile (Peso)
China (Renminbi)
Colombia (Peso)
Czech. Rep (Krouna)
.002352
.1201
....
.002356
.1201
....
425.25
8.3272
.0009985 .0009985 1001.50 1001.50
....
424.40
8.3276
....
South Africa (Rand)
South Korea (Won)
Spain (Peseta)
Sweden (Krona)
.2141
.001184
.007546
.1431
.2142
.001184
.007603
.1435
4.6705
844.75
132.52
6.9865
4.6690
844.65
131.53
6.9697
£.5924 = $1
Commercial rate .03662 .03677 27.307 27.194 Switzerland (Franc) .7334 .7387 1.3635 1.3537
Denmark (Krone) .1663 .1677 6.0118 5.9633 30-Day Forward .7357 .7411 1.3593 1.3494
Ecuador (Sucre) .... .... .... .... 90-Day Forward .7401 .7454 1.3511 1.3416
Floating rate .0002766 .0002787 3615.00 3587.50 180-Day Forward .7470 .7523 1.3386 1.3293
Finland (M arkka) .2121 .2135 4.7150 4.6841 Taiwan (Dollar) .03638 .03637 27.489 27.493
France (Franc) .1879 .1893 5.3220 5.2838 Thailand (Baht) .03902 .03906 25.625 25.605
30-Day Forward .1882 .1896 5.3126 5.2741 Turkey (Lira) .00000911 .00000915 109755.00 109235.00
90-Day Forward .1889 .1903 5.2935 5.2558 United Arab (Dirham) .2723 .2723 3.6720 3.6720
180-Day Forward .1901 .1914 5.2617 5.2243 Uruguay (New Peso) .... .... .... ....
Germany (M ark) .6352 .6394 1.5744 1.5639 Financial .1145 .1145 8.7300 8.7300
30-Day Forward .6364 .6407 1.5714 1.5607 Venezuela (Bolivar) .002098 .002096 476.70 477.12
90-Day Forward .6389 .6432 1.5652 1.5547 ---
180-Day Forward .6430 .6472 1.5552 1.5450 SDR 1.4315 1.4326 .6986 .6980
Greece (Drachma) .004049 .004068 246.98 245.80 ECU 1.2308 1.2404 .......... ...........
Hong Kong (Dollar) .1292 .1292 7.7390 7.7390
Hungary (Forint) .006139 .006164 162.89 162.23 Special Drawing Rig hts (SDR) are based on exchang e rates for
India (Rupee) .02787 .02786 35.875 35.890 the U.S., German, British, French, and Japanese currencies. Source:
Indonesia (Rupiah) .0004233 .0004233 2362.15 2362.63 International Monetar y Fund.
Ireland (Punt) 1.6664 1.6714 .6001 .5983 European Currency Unit (ECU) is based on a basket of community
Israel (Shekel) .3079 .3085 3.2474 3.2412 currencies.
Italy (Lira) .0006483 .0006510 1542.50 1536.00 a-fixing , Moscow Interbank Currency Exchang e.
 Spot Rate Quotations
Currency
Wednesday, January 8, 1997 U.S. $ equiv . per U.S. $
Country W ed. Tues. W ed. Tues.
E XCH A N GE R A T E S Japan (Yen) .008639 .008681 115.75 115.20
The New York foreig n exchang e selling rates below apply to
trading among banks in amounts of $1 million and more, as q uoted
at 4 p.m. Eastern time by Dow Jones Telerate Inc. and other sources.
Retail transactions provide fewer units of foreig n currency per
30-Day Forward
90-Day Forward
180-Day Forward
Jordan (Dinar)
.008676
.008750
.008865
1.4075
.008718
.008791
.008907
1.4075
115.26
114.28
112.80
.7105
114.71
113.76
112.28
.7105
Note that
dollar. Kuwait (Dinar) 3.3367 3.3389 .2997 .2995

Country
Argentina (Peso)
U.S. $ equiv .
W ed.
1.0012
Tues.
1.0012
Currency
per U.S. $
W ed.
.9988
Tues.
.9988
Lebanon (Pound)
M alaysia (Ring g it)
M alta (Lira)
M exico (Peso)
.0006445
.4018
2.7624
....
.0006445
.4002
2.7701
....
1551.50
2.4885
.3620
....
1551.50
2.4990
.3610
....
the direct
Australia (Dollar) .7805 .7902 1.2812 1.2655 Floating rate .1278 .1277 7.8220 7.8330
Austria (Schilling )
Bahrain (Dinar)
Belgium (Franc)
Brazil (Real)
.09043
2.6525
.03080
.9607
.09101
2.6525
.03105
.9615
11.058
.3770
32.470
1.0409
10.988
.3770
32.205
1.0401
Netherland (Guilder)
New Zealand (Dollar)
Norway (Krone)
Pakistan (Rupee)
.5655
.7072
.1540
.02529
.5699
.7106
.1548
.02529
1.7685
1.4140
6.4926
39.540
1.7547
1.4073
6.4599
39.540
quote is the
Britain (Pound) 1.6880 1.6946 .5924 .5901 Peru (new Sol) .3814 .3840 2.6218 2.6039
30-Day Forward
90-Day Forward
180-Day Forward
Canada (Dollar)
1.6869
1.6843
1.6802
.7399
1.6935
1.6910
1.6867
.7370
.5928
.5937
.5952
1.3516
.5905
.5914
.5929
1.3568
Philippines (Peso)
Poland (Zloty)
Portugal (Escudo)
Russia (Ruble) (a)
Saudi Arabia (Riyal)
.03800
.3460
.006307
.0001787
.2666
.03802
.3475
.006369
.0001788
.2667
26.318
2.8900
158.55
5595.00
3.7503
26.300
2.8780
157.02
5594.00
3.7502
reciprocal of
30-Day Forward .7414 .7386 1.3488 1.3539

the indirect
90-Day Forward .7442 .7413 1.3437 1.3489 Singapore (Dollar) .7116 .7124 1.4053 1.4037
180-Day Forward .7479 .7450 1.3370 1.3422 Slov ak Rep. (Koruna) .03259 .03259 30.688 30.688
Chile (Peso) .002352 .002356 425.25 424.40 South Africa (Rand) .2141 .2142 4.6705 4.6690
China (Renminbi) .1201 .1201 8.3272 8.3276 South Korea (Won) .001184 .001184 844.75 844.65
Colombia (Peso) .0009985 .0009985 1001.50 1001.50 Spain (Peseta) .007546 .007603 132.52 131.53
Sweden (Krona) .1431 .1435 6.9865 6.9697
Czech. Rep (Krouna)
Commercial rate
Denmark (Krone)
Ecuador (Sucre)
Floating rate
....
.03662
.1663
....
....
.03677
.1677
....
....
27.307
6.0118
....
.0002766 .0002787 3615.00 3587.50
....
27.194
5.9633
....
Switzerland (Franc)
30-Day Forward
90-Day Forward
180-Day Forward
.7334
.7357
.7401
.7470
.7387
.7411
.7454
.7523
1.3635
1.3593
1.3511
1.3386
1.3537
1.3494
1.3416
1.3293
quote:
Finland (M arkka) .2121 .2135 4.7150 4.6841 Taiwan (Dollar) .03638 .03637 27.489 27.493
France (Franc) .1879 .1893 5.3220 5.2838 Thailand (Baht) .03902 .03906 25.625 25.605
1
1.688 
30-Day Forward .1882 .1896 5.3126 5.2741 Turkey (Lira) .00000911 .00000915 109755.00 109235.00
90-Day Forward .1889 .1903 5.2935 5.2558 United Arab (Dirham) .2723 .2723 3.6720 3.6720
180-Day Forward .1901 .1914 5.2617 5.2243 Uruguay (New Peso) .... .... .... ....
Germany (M ark) .6352 .6394 1.5744 1.5639 Financial .1145 .1145 8.7300 8.7300
Venezuela (Bolivar) .002098 .002096 476.70 477.12
30-Day Forward
90-Day Forward
180-Day Forward
Greece (Drachma)
.6364
.6389
.6430
.004049
.6407
.6432
.6472
.004068
1.5714
1.5652
1.5552
246.98
1.5607
1.5547
1.5450
245.80
SDR
ECU
---
1.4315
1.2308
1.4326
1.2404
.6986 .6980
.......... ...........
.5924
Hong Kong (Dollar) .1292 .1292 7.7390 7.7390
Hungary (Forint) .006139 .006164 162.89 162.23 Special Drawing Rig hts (SDR) are based on exchang e rates for
India (Rupee) .02787 .02786 35.875 35.890 the U.S., German, British, French, and Japanese currencies. Source:
Indonesia (Rupiah) .0004233 .0004233 2362.15 2362.63 International Monetar y Fund.
Ireland (Punt) 1.6664 1.6714 .6001 .5983 European Currency Unit (ECU) is based on a basket of community
Israel (Shekel) .3079 .3085 3.2474 3.2412 currencies.
Italy (Lira) .0006483 .0006510 1542.50 1536.00 a-fixing , Moscow Interbank Currency Exchang e.
 The Bid-Ask Spread
 The bid price is the price a dealer is willing to pay
you for something.
 The ask price is the amount the dealer wants you
to pay for the thing.
 The bid-ask spread is the difference between the
bid and ask prices.
Spot Market
 The Forward Market
 Forward Rate Quotations
 Long and Short Forward Positions
 Forward Cross Exchange Rates
 Forward Premium

.
 Forward Market
 A forward contract between a
bank and a customer calls for
delivery are a fixed future date of
a specified amount of fixed
currency against another at an
exchange rate fixed at the time of
the contract
 The contract is binding-both
parties must fulfill the contract
regardless of what the exchange
rate is at the time of the exchange
specified in the contract.
 Therefore the market where the
purchases and sales of currencies
are contracted in the present for
receipts and delivery in future is
called the Forward Market.
 Forward Exchange Rates are
determined by forward demand and
forward supply of various
currencies.e.g.
 Quotations Of Forward Rates
 Delivery of the currencies is to take place after
some-time(30 days,60 days or 90 days)
 Quotations are in the form of bid and ask.
 Premium and Discount In the
Forward Market
 Forward Premium: A foreign currency is said to
be at a forward premium if its future value exceeds
its present value in terms of domestic currency .
 Example: Spot(Rs/$)=Rs. 35.70/$ and three month
forward is F(Rs/$)=Rs. 36.90 dollar is at premium and
Rs is at discount.
 Forward Discount: A foreign currency is said to be
at a forward discount if its future is lower than its
present value in terms of domestic currency .
 Example: Spot(Rs/$)=Rs. 35.70/$ and three month
forward is F(Rs/$)=Rs. 34.90 dollar is at discount and Rs
is at premium.
A Forward Contract
 Spot Rate Quotations
Currency
Wednesday, January 8, 1997 U.S. $ equiv . per U.S. $
Country W ed. Tues. W ed. Tues.
E XCH A N GE R A T E S Japan (Yen) .008639 .008681 115.75 115.20
The New York foreig n exchang e selling rates below apply to
trading among banks in amounts of $1 million and more, as q uoted
at 4 p.m. Eastern time by Dow Jones Telerate Inc. and other sources.
Retail transactions provide fewer units of foreig n currency per
30-Day Forward
90-Day Forward
180-Day Forward
Jordan (Dinar)
.008676
.008750
.008865
1.4075
.008718
.008791
.008907
1.4075
115.26
114.28
112.80
.7105
114.71
113.76
112.28
.7105
Clearly the
dollar. Kuwait (Dinar) 3.3367 3.3389 .2997 .2995

Country
Argentina (Peso)
U.S. $ equiv .
W ed.
1.0012
Tues.
1.0012
Currency
per U.S. $
W ed.
.9988
Tues.
.9988
Lebanon (Pound)
M alaysia (Ring g it)
M alta (Lira)
M exico (Peso)
.0006445
.4018
2.7624
....
.0006445
.4002
2.7701
....
1551.50
2.4885
.3620
....
1551.50
2.4990
.3610
....
market
Australia (Dollar) .7805 .7902 1.2812 1.2655 Floating rate .1278 .1277 7.8220 7.8330
Austria (Schilling )
Bahrain (Dinar)
Belgium (Franc)
Brazil (Real)
.09043
2.6525
.03080
.9607
.09101
2.6525
.03105
.9615
11.058
.3770
32.470
1.0409
10.988
.3770
32.205
1.0401
Netherland (Guilder)
New Zealand (Dollar)
Norway (Krone)
Pakistan (Rupee)
.5655
.7072
.1540
.02529
.5699
.7106
.1548
.02529
1.7685
1.4140
6.4926
39.540
1.7547
1.4073
6.4599
39.540
participants
Britain (Pound) 1.6880 1.6946 .5924 .5901 Peru (new Sol) .3814 .3840 2.6218 2.6039
30-Day Forward
90-Day Forward
180-Day Forward
Canada (Dollar)
1.6869
1.6843
1.6802
.7399
1.6935
1.6910
1.6867
.7370
.5928
.5937
.5952
1.3516
.5905
.5914
.5929
1.3568
Philippines (Peso)
Poland (Zloty)
Portugal (Escudo)
Russia (Ruble) (a)
Saudi Arabia (Riyal)
.03800
.3460
.006307
.0001787
.2666
.03802
.3475
.006369
.0001788
.2667
26.318
2.8900
158.55
5595.00
3.7503
26.300
2.8780
157.02
5594.00
3.7502
expect that
30-Day Forward .7414 .7386 1.3488 1.3539

the yen will

90-Day Forward .7442 .7413 1.3437 1.3489 Singapore (Dollar) .7116 .7124 1.4053 1.4037
180-Day Forward .7479 .7450 1.3370 1.3422 Slov ak Rep. (Koruna) .03259 .03259 30.688 30.688
Chile (Peso) .002352 .002356 425.25 424.40 South Africa (Rand) .2141 .2142 4.6705 4.6690
China (Renminbi) .1201 .1201 8.3272 8.3276 South Korea (Won) .001184 .001184 844.75 844.65
Colombia (Peso) .0009985 .0009985 1001.50 1001.50 Spain (Peseta) .007546 .007603 132.52 131.53
Sweden (Krona) .1431 .1435 6.9865 6.9697
Czech. Rep (Krouna)
Commercial rate
Denmark (Krone)
Ecuador (Sucre)
Floating rate
....
.03662
.1663
....
....
.03677
.1677
....
....
27.307
6.0118
....
.0002766 .0002787 3615.00 3587.50
....
27.194
5.9633
....
Switzerland (Franc)
30-Day Forward
90-Day Forward
180-Day Forward
.7334
.7357
.7401
.7470
.7387
.7411
.7454
.7523
1.3635
1.3593
1.3511
1.3386
1.3537
1.3494
1.3416
1.3293
be worth
Taiwan (Dollar) .03638 .03637 27.489 27.493

MORE in
Finland (M arkka) .2121 .2135 4.7150 4.6841
France (Franc) .1879 .1893 5.3220 5.2838 Thailand (Baht) .03902 .03906 25.625 25.605
30-Day Forward .1882 .1896 5.3126 5.2741 Turkey (Lira) .00000911 .00000915 109755.00 109235.00
90-Day Forward .1889 .1903 5.2935 5.2558 United Arab (Dirham) .2723 .2723 3.6720 3.6720
180-Day Forward .1901 .1914 5.2617 5.2243 Uruguay (New Peso) .... .... .... ....
Germany (M ark) .6352 .6394 1.5744 1.5639 Financial .1145 .1145 8.7300 8.7300
30-Day Forward
90-Day Forward
180-Day Forward
Greece (Drachma)
.6364
.6389
.6430
.004049
.6407
.6432
.6472
.004068
1.5714
1.5652
1.5552
246.98
1.5607
1.5547
1.5450
245.80
Venezuela (Bolivar)
SDR
ECU
.002098
---
1.4315
1.2308
.002096
1.4326
1.2404
476.70
.6986
477.12
.6980
.......... ...........
dollars in
Hong Kong (Dollar) .1292 .1292 7.7390 7.7390
Hungary (Forint)
India (Rupee)
Indonesia (Rupiah)
Ireland (Punt)
.006139
.02787
1.6664
.006164
.02786
1.6714
162.89
35.875
.0004233 .0004233 2362.15 2362.63
.6001
162.23
35.890
.5983
Special Drawing Rig hts (SDR) are based on exchang e rates for
the U.S., German, British, French, and Japanese currencies. Source:
International Monetar y Fund.
European Currency Unit (ECU) is based on a basket of community
currencies.
six months.
Israel (Shekel) .3079 .3085 3.2474 3.2412
Italy (Lira) .0006483 .0006510 1542.50 1536.00 a-fixing , Moscow Interbank Currency Exchang e.