Weekly Currency Roundup
November 09-November 13, 2008
Local FX Market
This week, the market was a little and the US dollar rose slightly against the Bangladesh taka. There was ample demand for dollar in the market.
Money Market
Overnight money market was stable with market was very liquid. The call money rate was steady and settled near 6.50-7.00 percent range.
International Markets
This week the euro and the sterling went down heavily against the US dollar. Recession fears became a reality in Germany as gross domestic product in the single currency zone's biggest economy contracted by 0.5 percent, putting it in recession for the first time in five years. Sterling had fallen to a 6-1/2 year low at $1.4807. The floundering pound gave way to intense pressure after the Bank of England said on Wednesday that the British economy will shrink sharply next year, bolstering expectations for further aggressive rate cuts. The BoE's indication of more interest rate cuts added to expectations for further monetary easing by the European Central Bank, sending the euro to a two-week low against the dollar earlier in the global session at $1.2389 -- closing in on recent 2-1/2-year lows. Markets will look for hints on whether the European Central Bank might step up its monetary policy easing as several ECB policymakers including President Jean-Claude Trichet are expected to speak at a banking conference in Frankfurt.
Commodities
Crude oil rose, rebounding from its lowest in 21 months, after a plan was put forward for OPEC to hold a full meeting in Cairo this month before its scheduled December gathering. Ministers and officials from the Organisation of Petroleum Exporting Countries are having consultations by phone and may expand the Nov. 29 Cairo summit for OPEC's Arab leaders to a full group meeting, according to a delegate. Oil earlier dropped below $55 a barrel as the International Energy Agency made the biggest cut to its oil demand forecast in 12 years.
Standard Chartered Bank
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