Money Market
In the treasury bill auction held on Sunday, bid for BDT 10,129.00 million was accepted, compared with BDT 4,175.00 million in the previous week's bid. Weighted average yield of t-bills remained almost unchanged.

Call money rate was range-bound this week. Call money rate ranged between 4.00 and 9.00 per cent throughout the week.

International FX Market
In the beginning of the week, the euro regained its poise as investors snapped up the oversold single currency and gained comfort from an improvement in German business confidence. The yen fell sharply against the euro and edged nearer to an eight-month low versus the dollar as oil prices soared and after Beijing insisted it would not be browbeaten into revaluing its yuan currency peg. German business confidence rose as expected in June for the first month in five as firms grew more optimistic about both current activity and the future.

The dollar hit its highest level since October versus the yen and rose against the euro in the middle of the week, before a Federal reserve meeting that is likely to strengthen the dollar's interest rate advantage over its rivals. Expectations that the US central bank will raise rates by a quarter percentage point to 3.25 per cent on Thursday at the end of its two-day meeting have bolstered the yield appeal of the dollar against the euro and yen. With the market already pricing in a rise in the cost of borrowing, attention will be on the post-meeting statement for clues on the future path of interest rates. Though some dealers said the Fed was unlikely to alter its position to keep raising rates at a measured pace.

By the end of the week, the dollar steadied below this week's nine-month highs against the yen and 13-month highs against the Swiss franc as dealers adjusted positions ahead of an expected US interest rate rise. In the Fed's policy statement around 1815 GMT, the central bank is almost unanimously forecast to increase its funds rate by a quarter-percentage point to 3.25 per cent and is likely to signal more credit tightening ahead, raised expectations interest rates in the Europe might be heading down.

- Standard Chartered Bank