Weekly Currency Roundup
July 12th-July 16th, 2009
International Markets
This week the international currency markets were mainly influenced by US corporate earnings reports. Investors appeared to be cautious ahead of the numbers releases, and this sparked a rally in the lower yielding safe haven currencies. The yen and USD rallied broadly against the other currencies. Yen also appreciated against the USD and hit a 5 month high versus the dollar. Fears about an economic slowdown also impacted crude oil prices, with prices falling sharply. This led the petro currencies lower. On Wednesday after the release of very strong results posted by Goldman Sachs, there was an increase in appetite for riskier assets, which led both the equity markets as well as the higher yielding currencies upwards.
Local Money Market
The call money rate traded at very low rates this week and was in range of .1-.25. A few stray deals traded were done at higher rates. Excess liquidity was the cause of such low rates.
Local Market FX
The USD remained steady against the BDT throughout the week. The market was active and there was ample liquidity.
-- Standard Chartered Bank
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