Money Market
Overnight money market was stable. The call money rate was range bound throughout the week and most of the deals ranged between 6.75-7.50 percent.

In the Treasury bill auction held on Sunday, bid for BDT 7,500.00 was accepted compared to BDT 7,500.00 last week. Weighted average yield was unchanged for all categories of T-bills but rose slightly for 91D T-bills.

International FX Market
The week saw the yen hit a record low against the euro, as investors piled back into carry trades. The dollar recovered against the euro at the beginning of the week, but lost ground again as the ECB raised its interest rate to 4 percent and indicate further rate hikes in the future. However the dollar got some respite as the US Fed is not expected to cut its benchmark interest rate anytime soon, backed by some good jobs data.

USD dollar
The US dollar initially gained ground against the euro, backed by robust US jobs data. This trimmed expectation that Federal reserve would cut its benchmark interest rate from 5.25 percent. However the dollar lost ground against the euro as the ECB raised its interest from 4 percent and indicated further rate hikes.

Euro
The ECB has raised interest rate to 4 percent and indicated further rate hike. The reduced interest rate differential has given euro a boost against its major rivals. The euro has also been boosted by the fact that major economies has been performing very good.

Yen
The yen hit record low against the euro and basket of other currencies. The yen has been severely impacted because of its low interest rate, which makes it a prime candidate for carry trades. The low yielding yen is borrowed and is used to invest in high yielding assets such as the euro and the dollar.

- By Standard Chartered Bank