July 18-22, 2010
International Markets
The euro this week tested the $.30 boundary, but could not sustain above the key level. Attention focused on the release of European bank stress test results, due on Friday although some sources said they may be released earlier. The euro has had a good run against the dollar in anticipation of the test results, rising to a 10-week high above $1.30 on Tuesday as, traders bet most of the 91 European banks being examined would pass.
Some in the foreign exchange market say the test results could be positive for the euro if they reveal no unpleasant surprises, but doubts linger over whether the checks are tough or transparent enough.
The dollar fell close to a seven-month low against the yen on Thursday on downbeat comments from Federal Reserve Chairman Ben Bernanke.
The dollar was down at 86.72 yen, extending losses after a 0.5 percent fall on Wednesday, on a mixture of Japanese exporter offers and hedging selling related to some currency-linked structured notes.
Traders said the dollar could fall fast if it broke below a seven-month trough of 86.27 yen hit last week, with stop-loss dollar offers believed to be waiting below that level.
Local Money Market
The call money rates dropped lower on Thursday, and was averaging around 2.5% throughout the week.
Local Market FX
USD/BDT rate came down a bit this week. Demand was steady for the greenback.
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