Dollar strong, call rate steady

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FE Report
The US dollar retained its strength against the Bangladesh taka (BDT) Tuesday in the inter-bank foreign exchange market with steady demand for the greenback, fund managers said.
The inter-bank call money rate remained steady despite withdrawal of large amount of cash through reverse repurchase agreement (repo), Bangladesh Bank (BB) bills and Bangladesh Government Treasury (BGT) bonds.
The exchange rate of the dollar ranged between Tk 68.70 and Tk 68.71 against previous day's rate of Tk 68.71 in the inter-bank market.
The greenback was steady in public deals and the cash dollar was exchanged at rates varying between Tk 67.60 and Tk 69.90 maintaining the previous day's range.
In the informal market, the dollar was also steady and it was traded at rates varying between Tk 71.20 and Tk 71.50 against the previous day's range of between Tk 71.10 and Tk 71.50. The informal market experienced steady demand for the dollar, 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 rate of the dollar against the Indian rupee moved between Rs 39.62 and Rs 39.66 and the Pakistani rupee between Rs 60.65 and Rs 60.85. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3965 ringgit and 3.3995 ringgit, and that against the Thai currency between 34.24 baht and 34.26 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 115.88 yen and 115.90 yen, while the euro moved between 1.4164 dollar and 1.4167 dollar against the greenback.
As on October 02, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.12060 per cent for one month, 5.23000 per cent for three months, 5.14630 per cent for six months, 4.95120 per cent for nine months and 4.90120 per cent for twelve months.
The inter-bank call money rate marked its steady track in an active market.
The rate in its extreme range fluctuated between 6.50 per cent and 10.00 per cent repeating previous day's range.
In most deals, the rates fluctuated between 6.50 per cent and 6.65 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
Some non-banking financial institutions borrowed cash from the inter-bank market at high rates to meet urgent demands of their clients influencing the call rate to rise above normal trend in some stray deals, fund managers said.
The call rate was above the bank rate of 5.00 per cent in all deals confirming higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 10.78 billion through reverse repo at an interest rate of 6.50 per cent per annum.