Local FX Market
US dollar strengthened strongly against Bangladeshi taka through out the week. Increased demand for USD for import payments and outward remittances pushed the rate up.

Money Market
Bangladesh Bank borrowed BDT 12,890.00 million through the Treasury bill auction held on Sunday, compared with BDT 8,122.00 million in the previous week's bid. Weighted average yields of t-bills of different tenors were almost unchanged from the previous bid.

Call money rate eased in this week compared with last week. Call money rate ranged between 2.50 and 3.00 percent in the beginning of the week. It continued to ease and ended the week at 2.00 and 2.50 percent.

International FX Market
Euro hit an all-time high against US dollar

Swiss franc and GBP at decade high against dollar

In the beginning of the week, the dollar teetered above last week's record low against the euro and 4-1/2 year low against the yen as traders afforded the currency some respite after 10 consecutive weeks of losses. Signs that China is in no rush to let its pegged currency appreciate against the dollar gave some support to the greenback which has shed nearly 9 percent against the euro and the yen in the last 2 months. Speaking on Sunday, Chinese Premier Wen Jiabao played down the likelihood of a yuan revaluation in the near term and questioned why US policymakers had taken no action to stem the dollar's fall. The dollar was up nearly half a percent against the yen and a quarter percent against the euro in early European trade.

The dollar hit a 12-year low against the pound on Wednesday due to persistent worries about the US current account deficit as well as recent upbeat data on the British economy. US dollar hit a new low against the euro on Tuesday. It held near a record low against the Euro but the market hesitated to drive down the US currency further before closely watched economic releases later in the week. Market players were turning their attention to a slew of economic indicators due in the US this week, including manufacturing data on Wednesday and the monthly payrolls report of Friday.

-- Standard Chartered Bank