Dollar weakens, call rate stable

FE Team | Published: November 02, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The US dollar weakened against the Bangladesh taka (BDT) Thursday with moderate demand for the greenback in the inter-bank foreign exchange market, fund managers said.
The inter-bank call money rate, however, retained its earlier level despite withdrawal of cash through reverse repurchase agreement (repo) auctions in an active market.
The exchange rate of the dollar varied between Tk 68.65 and Tk 68.66 against previous day's range of Tk 68.66 and Tk 68.67.
The greenback also lost ground in public deals and the cash dollar was exchanged at rates varying between Tk 67.42 and Tk 69.90 against the previous day's range of between Tk 67.60 and Tk 69.90.
In the informal market, the dollar, however, remained steady and it was traded at rates varying between Tk 70.20 and Tk 70.40 against the previous day's range of between Tk 70.10 and Tk 70.40. The informal market experienced moderate demand for the dollar, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated 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 39.22 and Rs 39.25 and the Pakistani rupee between Rs 60.76 and Rs 60.86. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3300 ringgit and 3.3320 ringgit, and that against the Thai currency between 33.90 baht and 33.94 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 115.36 yen and 115.39 yen, while the euro moved between 1.4434 dollar and 1.4436 dollar against the greenback.
As on November 01, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.70520 per cent for one month, 4.89370 per cent for three months, 4.80620 per cent for six months, 4.70810 per cent for nine months and 4.63750 per cent for twelve months.
The inter-bank call money rate was unchanged. The rate in its extreme range fluctuated between 6.50 per cent and 10.00 per cent maintaining the previous day's range.
In most deals, the rates moved between 6.50 per cent and 6.55 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
The borrowing of cash at high rates from the inter-bank market by some non-banking financial institutions in some stray deals to meet urgent demands of their clients forced the call rate to rise above the normal trend, 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 16.85 billion through reverse repo at an interest rate of 6.50 per cent per annum.