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

International FX Market
The week began with the US dollar hitting record lows against the euro and 26 year lows against the sterling. However near end of the week, the dollar recovered on the back of technical corrections.

US dollar
The dollar hit a record low of $1.3852 against the euro and a 26 year low of $2.0655 against the GBP. The weak performance was on the back of concern regarding the US subprime mortgage market. Investors feared that the trouble in the subprime sector could spillover and affect the whole economy and lead to interest rate cuts. However, near the end of the week the dollar recovered against its major rivals after some technical corrections.

Euro
After hitting a record high against the US dollar on Tuesday, the euro lost ground against the dollar, falling more than 3/4 of a percent on Wednesday, posting its biggest daily fall in percentage terms since January.

Yen
The yen gained ground against the US dollar, hitting a 2½ month high against the US dollar. Investors were looking to the US housing data for further clues about the troubled US sub-prime market.

-- Standard Chartered Bank