Dollar drops, call rate eases

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FE Report
The US dollar fell against the Bangladesh taka (BDT) Sunday in the inter-bank foreign exchange market because of lower demand for the greenback, fund managers said.
The market was moderately active due to weekend in the international market.
The exchange rate of the dollar against the BDT varied between Tk 68.67 and Tk 68.71 against the previous day's range of between Tk 68.70 and Tk 68.76 in the inter-bank foreign exchange market.
The major transactions were held at the rates ranging between Tk 68.67 and Tk 68.70 in the inter-bank mar ket, they said.
The dollar also appeared weaker in public deals. The cash dollar was transacted at rates fluctuating between Tk 66.95 and Tk 69.90 against previous day's range of between Tk 67.05 and Tk 69.90.
In the informal market, the dollar was also steady and it was traded at rates varying between Tk 70.70 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.80 and Tk 71.00. The demand for the greenback was higher in the informal market, money dealers said.
The exchange rate of the Indian rupee against the taka varied between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rates of the dollar against the Indian rupee moved between Rs 40.17 and Rs 40.21 and the Pakistani rupee between Rs 60.37 and Rs 60.39.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4465 ringgit and 3.4515 ringgit, and that against the Thai currency between 31.34 baht and 31.54 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 123.41 yen and 123.44 yen, while the euro moved between 1.3628 dollar and 1.3630 dollar against the greenback.
As on July 08, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.32000 per cent for one month, 5.36000 per cent for three months, 5.39060 per cent for six months, 5.42000 per cent for nine-months and 5.44810 per cent for twelve months.
The inter-bank call money rate slightly eased on the day despite withdrawal of large amount of cash through reverse repurchase agreement (repo) and treasury bills, fund managers said.
The rate moved between 6.50 per cent and 10.00 per cent against the previous day's range of between 6.50 per cent and 10.25 per cent.
The rates, however, fluctuated between 6.50 per cent and 6.70 per cent in most deals against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
The call rate as usual fluctuated above the bank rate of 5.00 per cent indicating higher than expected pressure on liquidity, fund managers said.
The call rate rose above the normal trend with some non-banking financial institutions borrowing cash at high rates from the inter-bank market to meet immediate demands of the clients, fund managers said.
The central bank withdrew Tk 21.93 billion conducting reverse repo auctions at an interest rate of 6.50 per cent per annum.
Besides, the government borrowed Tk 8.00 billion Sunday through auctions of treasury bills. It created negligible pressure on the liquidity.