Standard Chartered Bank
Friday, 12 October 2007
The US dollar/BDT market was active. USD remained weak against BDT throughout the week. Demand for dollar was stable in the local market and USD showed downward movement.
Money market
Overnight money market tightened a little during the week. The call money rate increased a little. Most of the deals ranged between 7.50-12.00 per cent near the end of the week.
In the treasury bill auction held on Sunday, bid for BDT 7,000 million was accepted. Weighted average yield rose slightly for the 28-day T-bills, but remained almost unchanged for all other categories of T-bills.
International Market
The week began as the dollar gained on Monday against major currencies as last Friday's stronger-than-expected U.S. jobs report eased worries about a recession in the world's biggest economy. Figures showed the U.S. created 110,000 non-agricultural jobs in September, the most since May. The Yen in contrast fell to a two-and-a-half month lows versus both dollar and euro.
In the middle of the week, dollar firmed further against euro on Tuesday as it continued to draw support from a more positive U.S. economic outlook and a growing view the Federal Reserve may not cut interest rates later this month. However, dollar fell 0.2 per cent against yen because of selling by Japanese exporters returning from a three-day weekend. Euro slipped 0.15 per cent against dollar, about two and a half cents below the previous week's record peaks. Tuesday brought a fresh round of comments on euro's strength from European politicians, with French Trade Minister Herve Novelli saying the strong currency is undeniably causing problems for the economy and Irish Prime Minister Bertie Ahern saying that the exchange rate is hurting competitiveness.
By the end of the week however, euro paired back most of its losses against dollar and yen on Thursday.
Money market
Overnight money market tightened a little during the week. The call money rate increased a little. Most of the deals ranged between 7.50-12.00 per cent near the end of the week.
In the treasury bill auction held on Sunday, bid for BDT 7,000 million was accepted. Weighted average yield rose slightly for the 28-day T-bills, but remained almost unchanged for all other categories of T-bills.
International Market
The week began as the dollar gained on Monday against major currencies as last Friday's stronger-than-expected U.S. jobs report eased worries about a recession in the world's biggest economy. Figures showed the U.S. created 110,000 non-agricultural jobs in September, the most since May. The Yen in contrast fell to a two-and-a-half month lows versus both dollar and euro.
In the middle of the week, dollar firmed further against euro on Tuesday as it continued to draw support from a more positive U.S. economic outlook and a growing view the Federal Reserve may not cut interest rates later this month. However, dollar fell 0.2 per cent against yen because of selling by Japanese exporters returning from a three-day weekend. Euro slipped 0.15 per cent against dollar, about two and a half cents below the previous week's record peaks. Tuesday brought a fresh round of comments on euro's strength from European politicians, with French Trade Minister Herve Novelli saying the strong currency is undeniably causing problems for the economy and Irish Prime Minister Bertie Ahern saying that the exchange rate is hurting competitiveness.
By the end of the week however, euro paired back most of its losses against dollar and yen on Thursday.