Dollar slips, call rate unchanged

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FE Report
The US dollar slipped slightly against the Bangladesh taka (BDT) Tuesday in the interbank foreign exchange market although the demand for the greenback remained stable, fund managers said.
The market experienced higher supply of dollar that influenced the greenback to surrender a portion of its earlier gains to the taka.
The exchange rate of the dollar against the BDT varied between Tk 68.64 and Tk 68.65 against the previous day's range of between Tk 68.65 and Tk 68.70 in the inter-bank foreign exchange market.
The dollar was, however steady in public deals. The cash dollar was transacted at rates fluctuating between Tk 66.90 and Tk 69.90 repeating the previous day's range.
In the informal market, the dollar remained almost unchanged and it was traded at rates fluctuating between Tk 70.70 and Tk 71.00 in the informal market against the previous day's range of between Tk 80.70 and Tk 71.00. The demand for the greenback was lower in the informal market, money dealers said.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 122.83 yen and 122.86 yen, while the euro moved between 1.3663 dollar and 1.3665 dollar against the greenback.
As on July 10, 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, 5.39000 per cent for six months, 5.42000 per cent for nine-months and 5.44800 per cent for twelve months.
The inter-bank call money rate marked its steady level on the day despite withdrawal of large amount of cash through reverse repurchase agreement (repo), Bangladesh Bank (BB) bills and Bangladesh Government Treasury (BGT) bonds, fund managers said.
The rate moved between 6.50 per cent and 10.00 per cent maintaining the previous day's range.
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 fluctuated above the bank rate of 5.00 per cent that indicated higher than expected pressure on liquidity, fund managers said.
The call rate rose above the normal trend, as some non-banking financial institutions borrowed cash at high rates from the interbank market to meet urgent demands of the clients, fund managers said.
The central bank withdrew Tk 13.20 billion through reverse repo auctions at an interest rate of 6.50 per cent per annum.
Besides, it drained out Tk 6.49 billion against 30-day BB Bills at an interest rate of 7.39 per cent per annum.
The central bank also conducted auctions of fifteen-year BGT Bonds and withdrew Tk 1.00 billion, including Tk 616.50 million against bids and Tk 383.50 million devolved to primary dealers, central bank sources said.