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week. Fueled by a pick up in global investor sentiment, as well as
continued speculation on countries moving away from the dollar as the
primary reserve currency continued to weigh down the dollar, and
reaffirmed its long term downtrend. There was also a news report on
the US dollar being replaced as the currency for oil trade. This
further hit the dollar. The dollar weakened on Thursday after strong
Australian jobs data sent the Australian dollar sharply higher and an
upbeat US corporate earnings report fuelled investor demand for
higher risk and yield at the expense of the greenback. Australian
data beat expectations for a fall in jobs in September, with 40 ,600
positions created instead, pushing the Aussie to a 14- month high
against the US currency as markets anticipated more interest rate
hikes to come. On Tuesday, the RBA became the first central bank in
the Group of 20 to raise its cash rate in this cycle. The move led
to a general improvement in risk appetite and made leveraged carry
trades even more attractive. On the other hand, US interest rates
are set to remain anchored at record lows well into next year, making
the dollar a possible funding currency for higher-yielding assets.
On the other hand, US interest rates are set to remain anchored at
record lows well into next year, making the dollar a possible funding
currency for higher-yielding assets Local Money Market The call money
rate traded in the range of .5 % the week. The market was flooded
with liquidity after the maturity of bills the previous week, and
rates remained very low. Local Market FX The USD remained steady
against the BDT this week. The market was active and there was
ample liquidity.
