Local FX Market
US dollar remained stable against the Bangladeshi Taka last week on back of comfortable supply.

Money Market
Overnight money market was steady throughout the week. The call money rate remained unchanged throughout the week and ranged between 6.25 and 6.75 percent.

International FX Market
The dollar rose on Friday after US payrolls data showed moderately healthy job growth, but did not make the case for a near-term change in interest rates. Though the US economy added fewer jobs than expected in January, sharp upward revisions to the government's estimates of November and December employment growth painted a rosier picture of US economic strength. The week began as the yen hit a 1-1/2 week high against the euro and rose versus the dollar on Monday as investors scaled back their bets against the Japanese currency before a weekend meeting of Group of Seven financial chiefs. The G7 meeting in Essen, Germany on Feb 9-10 is in the spotlight as European officials have been pushing for discussion of the yen's weakness, although their Japanese and US counterparts have played down the issue. The yen rose against the euro before trimming its gains, still up 0.4 percent on the day. The Japanese currency was also up 0.3 percent at against the dollar. The euro was down 0.1 percent at against the dollar.

In the middle of the week, the yen hit three-week highs against the dollar and the euro on Tuesday, with investors worried that the Japanese currency's broad weakness may be scrutinised at a weekend meeting of the Group of Seven. Japanese and US officials have been playing down the issue, leading some to conclude that the Feb 9-10 summit in Essen, Germany, will not present a united front on the weak yen. The dollar was steady against the dollar, above an earlier three-week low according to Reuters data, but nearly 2 yen below 4-year peaks hit last week. The yen retreated versus the euro and the dollar on Wednesday as investors grew more confident that this weekend's Group of Seven meeting would not yield a joint statement on the Japanese currency's weakness. The dollar was up 0.45 percent on the day against the yen. The euro gained 0.6 percent against the yen, rebounding from a three-week low hit on Tuesday. The single currency was a touch firmer against the dollar. Japan has the lowest interest rates among industrialised countries, at just 0.25 percent, well below 5.25 percent in the United States and 3.5 percent in the euro zone.

At the end of the week, the yen retreated on Thursday on doubts that the Group of Seven will take a united front against the Japanese currency's weakness when it meets this weekend, whilst the euro eased against the dollar ahead of a euro zone rate decision. The European Central Bank is widely expected to hold rates at 3.50 percent, shifting the focus to the tone of the post-decision news conference by president Jean-Claude Trichet. The dollar was up 0.5 percent on the day and recovering from a slide earlier in the week, its lowest since early January. But it was still around 1 yen below a 4-year high hit last week. The euro rose against the yen, recovering from Tuesday's 3-week low according to Reuters data and within range of a record high above 158.

60 yen hit last month. With investors becoming more comfortable about carry trades again, the Swiss franc -- the second lowest yielding currency in the industrialised world after the yen -- also weakened versus the euro and the dollar.

- Standard Chartered Bank