Local FX Market
US dollar strengthened against Bangladeshi taka in this week. It was steady in the beginning of the week. Higher demand of greenback for import related transaction pushed the rate up throughout the week.

Money Market
Bangladesh Bank borrowed BDT 9,715.00 million through the Treasury bill auction held on Sunday, compared with BDT 4,266.00 million in the previous week's bid. The weighted average yields of t-bills of different tenors were almost unchanged from the previous bid.

Call money rate was volatile in the week. The rate ranged between 2.75 and 3.25 percent in the beginning of the week. It eased during the middle of the week and came as low as 2.00 percent. But it increased by the end of the week and ended between 3.00 and 4.00 percent.

International FX Market
In the beginning of the week, the dollar touched a six-week high against the yen as the Japanese currency was ground down by weak stock market and oil prices pushing back towards record highs. The euro held steady against the dollar after Germany's IFO business survey came in broadly in line with expectations and the research institute said the survey pointed to a continuation of moderate economic recovery.

The yen pulled back above a 6-week low on the dollar and a 4-month trough on the euro in the middle of the week, as oil prices backed off record highs, while the euro maintained its grip on recent gains against the dollar. US light crude was trading around $50.00 a barrel on Wednesday after backing down from a peak of $50.47 the previous day, but analysts said Japan's heavy dependence on oil imports meant the yen remained vulnerable, especially ahead of a key survey on Friday of Japanese business known as the "tankan".

By the end of the week, the yen steadied after bouncing back from recent lows against the dollar and euro as oil prices stepped down from its week's record highs, while investors awaited key economic data from Japan. On Friday, Bank of Japan would release its quarterly corporate sentiment survey which is expected to show a rise to its highest level in more than a decade but signal a less robust outlook for the future.

-Standard Chartered Bank