Local FX Market
The demand for US dollar was stable in the week. The dollar showed a slight upward trend against Bangladeshi taka at the beginning of the week, but remained range bound in the latter half of the week.

Money Market
Overnight money market was stable this week. The call money rate was range bound and most of the deals ranged between 6.60 and 6.75 percent throughout the week.

International FX Market
The week saw the market moving in favor of the dollar with disappearing expectation of Fed rate cut and rising bond yields. Yen was still under pressure as Bank of Japan was seen doing nothing to change the market view of a slow and steady rate rise. Market experienced a boost in higher yielding currencies i.e. New Zealand dollar, sterling.

US dollar
The US dollar gained against the yen this week, but lost ground against the euro after data showed that the consumer prices for May rose at its slowest pace since March 2006. However, dollar recouped some ground against euro later in the week with focus on US interest rate. Rising US Treasury yields and waning expectation of Fed rate cut later in the year is shifting the environment in favor of dollar.

Euro
The euro hit a record high against the yen and also made gains against the US dollar. However the gain against the US was somewhat hampered after a survey showed weak German investor confidence. However, the euro remained steady for the rest of the week.

Yen
The yen was at a 4-1/2 week low against the USD and a lifetime low of 166.11 against the euro after the BOJ said that they are unwilling to increase interest rates form its current level of 0.5 percent. This is the lowest interest rate in the industrialized world. The BOJ is expected to increase its rate to 0.75 percent in August.

Sterling
Higher-yielding currencies generally drew support this week. Sterling, which offers the highest interest rate among the G7 currencies, hit a 3-1/2 month high against the euro. The pound was extending gains later in the week. The minutes fanned expectations the BoE could raise rates as soon as July.

-- Standard Chartered Bank