Weekly Currency Roundup

September 7-September 11, 2008
Local FX Market
This week, there was ample liquidity in the local market, and US dollar was stable against the Bangladesh Taka. The demand for dollar was steady.
Money Market
Overnight money market was mostly steady. The call money rate remained range bound within to 7.50 - 8.5 percent.
International Markets
In the beginning of the week, a disappointing US nonfarm payrolls report proved no match for dollar strength against the euro and UK pound. The dollar also earned back overnight losses against the yen, which advanced across the board into the New York session as traders liquidated holdings in the currencies of many major leading countries with economic forecasts indicating a major deterioration in growth. In the middle of the week the takeover on Sunday of the two mortgage giants, which own or guarantee half of the country's $12 trillion in outstanding home mortgage debt, followed growing concern about the mounting losses at both, undermining the lenders as other sources of home lending have dried up. Towards the end of the week dollar advanced to a new one-year high against the euro on Thursday as investors refocused on sluggish economic prospects outside the United States, although worries about the US.
Commodities
Gold gained for the first day in four as a dip to the lowest price in almost 11 months spurred demand from jewelers and as crude rose from a five-month low on Thursday. Crude oil rose from a five-month low in New York as Hurricane Ike gained strength while entering the Gulf of Mexico, shutting fields and raising concern that refinery production may be disrupted. Copper rebounded from its lowest in more than seven months in London on speculation imports from China, the largest consumer, will gain on stronger local prices.

- Standard Chartered Bank