Money Market
Overnight money market was flat this week. The call money rate was range bound and most of the deals ranged between 6.50 and 6.75 percent throughout the week.

International FX Market
This week has been a turbulent one for the US dollar. This week saw the euro hit a fresh record high against the dollar because of worries that distress in the US high-risk mortgage sector could lead to a wider deterioration in credit markets. The euro also hovered near a record high against the yen. The Sterling again hit 26 year high against the US dollar.

US dollar
The dollar slid to multi-year lows against its major rivals as Federal Reserve Chairman Ben Bernanke said the US housing market slowdown could last longer than expected and act as a drag on spending and growth in coming quarters. While many in the market expect the Fed to hold interest rates steady this year, analysts expect the Bank of England and the European Central Bank to raise rates in September. These factors have also hurt the dollar in recent months.

Euro
The euro hit a fresh record high of $1.3833 on Wednesday, after concerns were raised regarding the health of the US economy. The euro was also supported by the fact that the European Central Bank will raise its benchmark interest rate from its current 4.0 percent as early as September.

Sterling
The Sterling again hit a new 26 year high of $2.0548 hit on Wednesday against US dollar, after data showed that UK retail sales for June grew 0.2 percent on the month and 3.4 percent on the year. However the growth was slower than the previous month's rate of increase and below analysts' expectations. Nevertheless the data strengthened expectation of a rate hike by the Bank of England soon.

Yen
The yen remained steady against the US dollar, moving marginally during the week.

- Standard Chartered Bank