Weekly Currency Roundup
Jan 11, 2009-Jan 15, 2009
Local FX Market
This week, the market was active and US dollar was stable against the Bangladesh Taka. There was demand for dollar in the market.
Overnight money market was stable this week with ample liquidity. The call money rate was steady and settled near 8.00-8.50 percent range.
Crude oil traded little changed in New York after US fuel demand fell the most in five years as crumbling economic confidence reined in consumer spending. US inventories of crude soared to a 16-month high as fuel demand tumbled 6 percent, the Energy Department said yesterday. European equity markets fell for a seventh day after the Standard & Poor’s 500 Index slid the most in six weeks yesterday on concern that company profits are deteriorating.
This week the dollar gained ground against the euro and the sterling, while the yen found support against the others. The euro struggled to make headway while the yen found support with global economic pressure mounting and investors focused on the European Central Bank's rate decision. The ECB is expected to lower interest rates on Thursday for the fourth month running as dismal data raises the chances of a recession deepening in the euro area. The state of the single currency bloc's economy and public finances has moved into sharp focus with Standard and Poor's cutting its credit rating on Greek sovereign debt on Wednesday, stoking fears downgrades to other members of the 16-country euro zone could follow. Wariness over the outlook for Ireland also lingered after Prime Minister Brian Cowen denied a report that he might call on the International Monetary Fund (IMF) for economic help. Data this week summed up a bleak picture in Europe, showing Germany's economy grew at its slowest pace in three years in 2008. The euro zone's biggest economy contracted by between 1.5 percent and 2.0 percent in the final three months of the year.
-- Standard Chartered Bank