Money Market
Overnight money market was flat this week. The call money rate was range bound and most of the deals ranged between 6.50 and 6.60 percent throughout the week.

International FX Market
This week saw the euro hit a record high against the dollar on the back of some concerns on the health of the US economy. The euro also hovered near a record high against the yen. The sterling remained near its 26 year high against the US dollar.

US dollar
The dollar struggled against the euro, hitting a record low, after Standard & Poors indicated that they would change the rating of $ 12 bn worth of subprime related debts. The dollar also slipped a little against the yen, and recovered slightly later in the week. The fact that US interest rates would be on hold while the rest of the economies are going to raise theirs has also hurt the dollar in recent weeks.

Euro
The euro hit a record high against the US dollar after comments by Standard & Poors. The comments cast a doubt over the health of the overall US economy.

Sterling
Sterling hovered near a 26 year high of 2.0342 and was moved with a range. The rising interest rate of Britain has given sterling a boost against the dollar.

Yen
The yen recovered slightly against the dollar from its 4 and a half year lows, but the recovery was short lived because the Bank of Japan has kept its interest rate on hold at 0.5 percent which is the lowest in the industrialised world.

- Standard Chartered Bank