Money Market
In the treasury bill auction held on Sunday, bid for BDT 7,691 million was accepted, compared with total of BDT 6,272.00 million in the previous week's bid.

Overnight money market was stable in the beginning of the week and ranged between 12.00 and 17.00 percent. The rate increased by the end of the week and ranged between 25.00 and 30.00 percent.

International FX Market
The dollar eased on Monday on profit-taking after Friday's data-induced spike, but stayed above last week's seven-month low against the euro, bolstered by a view that the Federal Reserve has room to raise rates at least once more. March US payrolls data last week hardened expectations that the Fed will lift its funds rate for a 16th straight time to 5 percent at its next meeting in May, pushing the dollar up around one percent against the euro on Friday. US President George Bush said the jobs report was evidence of an overall economic resurgence "that is strong and broad and benefiting all Americans". The jobs outcome also convinced more investors that the central bank would raise rates again after May, but as future monetary policy depends on incoming economic data, investors hesitated to chase the dollar much higher.

The dollar moved away from this week's one-month high against the yen and steadied versus the euro on Wednesday ahead of US trade data which could rekindle concerns about the dollar's structural problems. Economist expects the trade gap to have narrowed in February from a record in the previous month, but investors remained on alert for a wider deficit which could push the dollar lower. Geopolitical concerns over Iran and perceptions that the Federal Reserve could be coming to the end of its monetary tightening, even if recent jobs data suggested it still had some room to maneuver, also kept the US currency on the back foot.

The dollar steadied on Thursday, keeping much of the previous day's gains, though some traders said the market was getting ready to take profits from the currency's recent rise ahead of the Easter holiday weekend. The dollar firmed after the US trade deficit for February came in narrower than expected at $65.7 billion on Wednesday, the third widest on record but below economists' estimates of $67.5 billion. Uncertainty about the timing of the end to the Federal Reserve's tightening cycle and when the Bank of Japan will raise interest rates also stifled the dollar. The Fed is expected to raise rates in May and possibly again after that, but expectations are growing that the US central bank will then end its tightening cycle. Some dealers said investors may also have become cautious about buying the dollar ahead of a Treasury Department report due next week on foreign capital flows into the United States, which have helped to finance the huge US trade deficit.

- Standard Chartered Bank