Money Market
Overnight money market was stable. The call money rate was range bound throughout the week and most of the deals ranged between 7.00 and 7.50 percent.

International FX Market
This week saw the yen hit a record low against the euro. The US dollar bounced back against the euro backed by some robust job data, despite the inflation data suggesting that the Fed might cut interest rate later this year.

US dollar
The week began with the market remaining steady against the US dollar, as the market was waiting for the inflation data of the world's largest economy. The inflation data was to give indication whether the Federal Reserve will cut its benchmark interest rate later in the year, as was expected by the market. The data came out on Wednesday, and the data suggested the inflation was well contained, which gave backing to the Fed's rate cut. However the dollar ended the week strongly after data showed surprising strength in the US job market, which reversed the market sentiment of rate cut.

Euro
The euro hit a record high against the yen, and was supported bullish expectations for euro area interest rates that raised the single currency's yield appeal. The euro got a boost as market expectations for higher interest rates firmed in the euro zone after data showing the region's economy grew an above-forecast 3.1 percent in the first quarter from the same period last year. Data on Wednesday also backed up the euro area outlook, showing euro zone inflation in April came in higher than initially estimated.

Yen
The yen was mostly steady against the dollar throughout the week, although hitting record low against the euro. Near the end of the week the yen fell to a three-month low against the dollar. The Japanese growth data halted the rate hike expectations, boosting the appeal of higher-yielding currencies. Japan's gross domestic product expanded at an annualised 2.4 percent in the first quarter, below expectations for 2.7 percent growth. The Bank of Japan, which had the morning to examine the growth figures, ended its two-day policy meeting by leaving interest rates steady at 0.5 percent, as expected. While the GDP data was slightly weaker than expected, it still marked the ninth consecutive quarter of growth and backed expectations for Japanese borrowing costs to be lifted later this year.

-Standard Chartered Bank