Money Market
In the Treasury bill auction held on Sunday, bid for BDT 4,534.00 million was accepted, compared with BDT 9,602.00 million in the previous week's bid. Weighted average yield of t-bills were mostly unchanged.

Call money rate was downward in the week. Call money rate ranged between 7.00 and 8.00 during the beginning of the week, while the rate was closed at 5.25-5.75 percent.

International FX Market
The yen recovered from a 3-1/2 month low against the euro and regained ground versus the dollar on Monday as worries over the impact of a possible snap election in Japan eased. Meanwhile, the dollar fell towards last week's two-month low versus the euro as investors waited to see whether the Federal Reserve would sound hawkish after Tuesday's interest rate decision. Against the euro, the yen was also recovering some poise to 138.46 yen. Market was awaiting for Tuesday's interest rates policy decision in the United States. The Federal Reserve was expected to deliver its 10th straight 25 basis point increase in its funds rate at a meeting on Tuesday, taking it to 3.5 percent.

The yen gained ground against the euro and the dollar during middle of the week as foreign investors chased a rally in Tokyo shares, which hit 4-year highs on data showing a brightening outlook for Japan's economy. The dollar slipped against most major currencies after the Federal Reserve lifted its funds rate for a 10th straight time to 3.5 percent but failed to deliver a stiffer warning about combating inflation pressures, disappointing some traders. Euro was little changed against USD, while Sterling rose to a five-week high against the dollar as investors anticipated that the Bank of England's quarterly inflation report would offer support for the pound.

The yen rose to a three-week high against the dollar on Thursday, bolstered by Tokyo stocks which hit four-year highs on optimism about Japan's economy and easing concerns about the country's political outlook. The dollar struggled near a 2-1/2 month low against the euro as investors squared positions ahead of US retails sales data for July due later in the session and trade deficit data for June on Friday.

-Standard Chartered Bank