Weekly Currency Roundup
Local FX Market
Demand for US dollar was stable in throughout the week and USD rose marginally against Bangladeshi taka.
Overnight money market was steady throughout the week. The call money rate remained unchanged throughout the week and ranged between 6.50 and 7.00 percent. International FX Market
The dollar hit a six-month high against the Swiss franc and a near three-month peak versus the euro on Friday after a series of US data further dashed expectations of a central bank rate cut in the near future. The week began as the euro dropped below $1.25 for the first time since mid-July. Late afternoon, the dollar was up 0.4 percent against the Swiss francs, near a six-month peak. The yen rose against the dollar and hit a one-week high versus the euro on Monday after Russia's central bank said it had started buying the Japanese currency for its foreign exchange reserves. The dollar held steady versus the euro as investors looked ahead to speeches from European Central Bank President Jean-Claude Trichet and several Federal Reserve officials later in the session -- including chairman Ben Bernanke. The dollar was down around a quarter percent against the yen, having hit a session low earlier and retreating from last week's 10-month high. The euro also fell around 0.25 percent, hitting a one-week low against the yen. In the middle of the week, the dollar steadied against major currencies on Wednesday ahead of US inflation data, a key marker for investors trying to puzzle out whether the Federal Reserve is likely to cut interest rates any time soon. The yen rose briefly to a 10-day high versus the dollar and three-week peak against the euro in late Tokyo trade after Business daily Nihon Keizai said the BOJ was concerned about carry trades -- in which investors borrow yen cheaply to invest in higher-yielding assets overseas. The dollar was steady against the euro and moved within recent ranges, and was up slightly against the yen off its earlier lows. The dollar was down more than a yen from a 10-month high hit late last week on fading expectations of a US rate cut this year. The euro hit a three-week low against the yen, before recovering on the day, steady from the US close. At the end of the week, the dollar eased against major rivals on Thursday after mixed US inflation data, with markets squaring positions ahead of a key business activity report that could further clarify the trajectory for interest rates. The euro was up 0.1 percent on the day, while the dollar was down a third of a percent at against the yen. Standard Chartered Bank
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