Local FX Market
US dollar was volatile against Bangladeshi taka. Greenback remained steady in the beginning of the week due to matched demand and supply. Dollar got stronger by the end of the week due to increased demand for profit remittances.

Money Market
Bangladesh Bank borrowed BDT 6,912.00 million through the treasury bill auction held on Sunday, compared with BDT 2,359.00 million in the previous week's bid. The weighted average yields of t-bills of different tenors were almost unchanged from the previous bid. Percentage distribution of accepted t-bills is shown in the following graph:

Call money rate was range-bound throughout the week. The rate ranged between 4.00 and 5.25 percent this week.

International FX Market
In the beginning of the week, dollar rose to a 3-1/2 week highs against euro, but it later retreated as nervousness ahead of this week's key US jobs report tempered the gains it had made on the back of Friday's firm data. The greenback rose almost one percent against euro on Friday after data showed US consumer confidence rose more than expected in August. However, trade was thin with London markets closed and dealers said dollar could find further gains difficult to achieve ahead of Friday's crucial payrolls.

The dollar struggled in the middle of the week to rise from the previous day's six-week lows versus the yen and a one-week trough against euro brought by weak US data, as caution remained high ahead of other key releases. Tuesday's sharper than expected fall in the Chicago purchasing management index may have heightened worries. Among important data, analysts are expecting the August Institute of Supply Management Index, due at 1400 GMT, to edge down to 60.0 from July's 62.0. US job data is also due on Friday, where economists are expecting a gain of about 160,000 jobs in August.

In the middle of the week, the dollar hovered around recent one-week lows against euro on Thursday, unable to find direction ahead of Friday's US labor report that could give crucial clues about short-term interest rate prospects. Many investors fear that another weak jobs number, after the last two heavily disappointed markets, might cast shadow over a widely-expected rate hike from the Federal Reserve later this month. The dollar was also unchanged from New York levels against the yen and the Swiss franc. Meanwhile, the market would also look to weekly US initial jobless claims figure.

- Standard Chartered Bank