Local FX Market

US dollar remained stable against the Bangladeshi taka last week on back of comfortable supply. The market remained almost unchanged against the taka.

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 weakened against the euro and yen on Friday, with German economic data boosting the case for higher European interest rates and investors cutting bets on further weakness in the Japanese currency. The dollar was down 0.4 percent against the yen, snapping the pair's first five-day advance since April. The week began as the dollar hit a two-month low against the euro on Monday, hurt by expectations that this week's US data will bolster the case for rate cuts, while a slight unwinding of carry trades lifted the yen. The euro was steady against the dollar, off an earlier two-month high. The dollar was down 0.3 percent against the yen, while the euro was, some way off Friday's record high. Traders said they yen's rise was the result of a slight unwinding of carry trades, where low-yielding currencies are use to fund purchases of higher return assets, but analysts said the move could be short-lived. The New Zealand dollar hit a two-month high after data showing business confidence rose to a two year high in February.

In the middle of the week, the yen gained around 1 percent versus major currencies on Tuesday as falling global stocks, concern about Iran's nuclear programme and jitters ahead of key US data prompted some investors to unwind carry trades. The dollar hit a two-month low against the euro, extending its grind lower ahead of figures from the US housing and consumer sectors which could fan concern about a slowdown in the world's biggest economy and a possible interest rate cut. The dollar was down 1 percent against the yen, a one-week low. The euro was down 0.8 percent against the yen. The Swiss franc hit a two-month high against the dollar and was up 0.2 percent against the euro. The euro hit a two month high against the dollar, up a third of a percent on the day. The dollar was up more than half a percent on the day against the yen, having fallen to a 10-week low on Tuesday. The euro was up 0.1 percent against the yen after touching a 3-week through on Tuesday.

The dollar slipped against the yen on Thursday, holding near a 10-week low as stock market declines across Asia made investors edgy about a further slide in risky assets despite a rebound in US shares the previous session. The dollar slipped against the yen, pulling back from a high struck early in the session. On Tuesday, the dollar fell to its weakest since Dec 15. The euro fell against the yen after hitting a high near 157.30 yen. The single European currency was down against the dollar, off the two month high struck on Tuesday.

-Standard Charter Bank