International Markets

The end of this week was marked by the US dollar hitting a 3 month high against the yen, driven by speculation Japanese investors are looking higher returns abroad at the start of Japan's new fiscal year. Traders brushed off a Bank of Japan survey showing a widely expected improvement in business sentiment during the March quarter. Japan's financial year began on Thursday, and market participants speculated that domestic investors would plough fresh funds into overseas assets which offer higher returns than those in Japan, where rates are seen staying low indefinitely. Still, some in the market argue that yen selling in past weeks has left the market increasingly short of the Japanese currency, leaving it vulnerable to a correction.

The dollar also recovered from a one-week low versus the euro as investors awaited US

jobs data on Friday which is expected to show a rise in non-farm payrolls, despite weaker than forecast private sector jobs numbers on Wednesday. European trade was quiet ahead of the Easter holiday weekend. The crucial US employment figures will be released when most markets are closed on Friday. Markets will also be shut on Monday. The euro was reversing some of the previous day's gains resulting from monthend fixings. It also shrugged off data showing euro zone manufacturing activity growing at its fastest pace in more than three years.

Local Money Market

The call money rate traded in the range of 3-3.25 this week.

Local Market FX

The USD was stable against the BDT this week. The market was active and there was ample liquidity.

-- Standard Chartered Bank