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
In the beginning of the week, the dollar softened broadly, touching a 15-year low against a basket of currencies as investors speculated that rising credit market risk and softening US data could force a cut in US interest rates. The dollar index dipped below the psychologically key 80.0 level, while the euro hovered within sight of its record high struck two-week ago.

US dollar was locked in narrow ranges against other major currencies in the middle of the week as investors awaited a Federal Reserve policy meeting. Monday's 2 percent rally in US stocks helped ease investor worries about a credit squeeze, but analysts were still expecting the US central bank to acknowledge recent turbulence after a widely-expected decision to leave rates on hold. Euro was also steady against Japanese yen.

By the end of the week, the low yielding yen jumped against the dollar and euro, while high yielder slid as investors cut exposure to carry trades due to continuing worries over problems in credit markets. The surge in short-term rates gave support to the dollar against other currencies, including euro. However, worries about the impact on the wider economy from problems in the US sub prime market refused to subside.

- Standard Chartered Bank