September 11 to 15, 2011 Standard Chartered Bank

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The local call money rates hovered around 6.0 per cent-10 per cent in the past week. The call money market liquidity scenario continued to improve as the week progressed, according to a bank statement. The inter bank US dollarBangladesh taka rates rose all through the past week with average liquidity prevailing in the market. The euro was vulnerable in the last week. Euro fell to its lowest against dollar in more than six months Friday in the wake of an ECB board member's resignation and the bank's monetary policy shift to a neutral bias. The declining trend continued as the euro fell to a seven-month low against the US dollar and a 10-year trough versus yen Monday, hurt by fears of a Greek default and the risk of contagion engulfing the region's banking system and larger economies. On Tuesday, euro fell sharply after a report cast doubt on the idea that China would support Italy by buying its government debt and risked more losses if a bond auction shows Rome faces difficulties raising money. Euro fell Wednesday and stayed within sight of a seven-month low plumbed this week as investors showed no confidence that talks between Greece, France and Germany would mark a significant step towards resolving the euro zone's debt crisis. Euro steadied Thursday as relief over assurances from Germany and France about keeping Greece in the euro bloc subsided, with the single currency set to stay weak on worries over whether Athens would manage to avoid a debt default. Dollar rose against franc Friday after hitting 3-12-month highs. On Tuesday, dollaryen slipped from a one-month high set Friday. But, dollar remained steady against yen Wednesday.