Local FX Market
Demand for US dollar was stable in throughout the week and USD fell slightly against Bangladeshi taka.

Money Market
In the Treasury bill auction held on Sunday, bid for BDT 7,940.00 million was accepted, compared with total of BDT 9,000.00 million in the previous week's bid. Weighted average yield rose slightly for 28D T-bills but remained unchanged for all other categories of T-bills sold on the day.

Overnight money market was steady throughout the week. The call money rate remained unchanged throughout the week and ranged between 6.50 and 7.00 percent.

International FX Market
At the beginning of the week, the dollar rose against major currencies on Friday as a slew of economic data eased investors' concerns about a sharp slowdown in the US economy. The US currency was bolstered by a better-than-expected reading on manufacturing activity in the Midwest as well as data showing still buoyant US consumer sentiment in September. In late afternoon trading, the euro was down 0.2 percent against the dollar. Sterling was down 0.3 percent against the dollar, near a two-week low.

In the middle of the week, the dollar slipped to one-week lows against the euro on Tuesday after data showed US manufacturing growth slowed to its weakest in 16 months, bolstering expectations of a cut in US interest rates. The euro was supported by firm survey data from Monday's euro zone manufacturing sector, ahead of an anticipated European Central Bank interest rate hike to 3.25 percent on Thursday. The euro hit a one-week high before easing a little on the day. The dollar was 0.1 percent lower against the yen, moving further away from a 5-1/2-month high struck on Monday. The euro was steady on the day against the yen. On Monday it hit a one-month high against the yen, stopping around half a yen short of record peaks seen at the end of August. The dollar rose across the board on Wednesday, with investors reckoning that falling oil and commodity prices could support growth in the world's biggest economy and reduce chances of a near-term interest rate cut. The dollar stood was up a third of a percent on the day, and was also up 0.1 percent against the yen, nudging back towards Monday's 5-1/2 month peak. The euro hit a one-month high against the yen, close to the August record high, before reversing some gains. The recent fall in energy and metal prices has made investors more cautious about where they look for high yields, sparking a sell-off in emerging markets and particularly the South African rand.

At the end of the week, the euro sat in tight ranges against the dollar and yen on Thursday as investors positioned themselves for a widely-expected interest rate increase by the European Central Bank later in the session. The ECB is seen raising rates to 3.25 percent to keep inflation in check, leaving investors to focus more on the post-decision news conference for comments from ECB President Jean-Claude Trichet that might yield clues on future credit tightening. The euro was flat on the day against the dollar. The single European currency was a touch weaker against the yen, while the dollar remained steady, off a 5-1/2-month high struck earlier this week. Sterling was flat against the dollar, but analysts said speculation about a surprise tightening this month could give way to losses if the decision goes as expected.

-Standard Chartered Bank