Dollar weakens, call rate rises

FE Team | Published: June 28, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The US dollar weakened slightly against the Bangladesh taka (BDT) Wednesday in the inter-bank foreign exchange market with stable demand for the greenback, fund managers said.
The exchange rate of the dollar against the BDT ranged between Tk 68.85 and Tk 69.02 against the previous day's range of between Tk 68.99 and Tk 69.10 in the inter-bank foreign exchange market.
The major transactions were made at rates varying between Tk 68.90 and Tk 69.00 against previous week's range of between Tk 69.00 and Tk 69.05 in the inter-bank market, they said.
The dollar, however, was stable in public deals. The cash dollar in public deals was transacted at rates varying between Tk 67.15 and Tk 69.90 maintaining previous day's range.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 70.80 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.70 and Tk 71.00. Demand for the dollar was higher in the informal market, money dealers said.
In the regional market, the exchange rates of the dollar against the Indian rupee fluctuated between Rs 41.02 and Rs 41.03 and the Pakistani rupee between Rs 60.56 and Rs 60.61.
The inter-bank call money rate, on the other hand, marked rise on the day although the central bank withdrew cash through reverse repurchase agreement (repo), fund managers said.
The rate moved between 6.50 per cent and 11.75 per cent against the previous day's range of between 6.50 per cent and 10.75 per cent.
The rates, however, fluctuated between 6.60 per cent and 7.00 per cent in most deals against the previous day's range of between 6.60 per cent and 6.90 per cent, they said.
The call rate as usual moved above the bank rate of 5.00 per cent in all deals indicating 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 inter-bank market to meet urgent demands of the clients, fund managers said.