Call rate, dollar in rising mood
Wednesday, 3 December 2008
FE Report
The inter-bank call money rate increased Tuesday despite injection of fresh cash through repurchase agreement (repo), as outflow of cash also took place through bills and bonds. The US dollar also gained against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to increased demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.25 per cent and 12.50 per cent against previous day's range of between 6.25 per cent and 12.00 per cent.
Most deals were, however, transacted at rates varying between 7.50 per cent and 9.50 per cent against previous day's range of 7.50 per cent and 9.00 per cent indicating higher pressure on liquidity, they said.
The call rate, however, rose above main trend in stray deals because of borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 3.48 billion on the day through auctions of reverse repo at an annual interest rate of 6.75 per cent.
Besides, it withdrew TYK 4.00 billion, including TYK 3.902 billion devolved to primary dealers, through Ten-Year Bangladesh Government Treasury Bonds at an annual interest rate 0f 11.72 per cent.
On the other hand, the central bank injected fresh cash amounting to Tk 15.77 billion into the market through repo auctions at an interest rate of 8.00 per cent that eased some pressure on liquidity. Earlier, the central bank injected Tk 13.725 billion, including Tk 3.94 billion to dealer banks as liquidity support, Monday at an annual interest rate of 8.75 per cent.
The dollar was stronger against taka in the inter-bank market due to increased demand for the foreign currency. The exchange rate of the greenback varied between Tk 68.85 and Tk 68.88 against previous trading day's range of between Tk 68.80 and Tk 68.85.
The market experienced moderate supply of the greenback, fund managers said.
The greenback also appeared stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 against previous trading day's range of between between Tk 67.80 and Tk 70.80.
In the informal market, the dollar remained steady and it was traded mainly at rates varying between Tk 68.00 and Tk 68.40 against previous day's range of between Tk 68.00 and Tk 68.30. The informal market experienced higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3810 and Tk 1.3842.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 49.87 and Rs 49.90 and the Pakistani rupee between Rs 78.50 and Rs 78.85. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6445 ringgit and 3.6470 ringgit and that against the Thai currency between 35.56 baht and 35.61 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 93.23 yen and 93.26 yen, while the euro moved between 1.2688 dollar and 1.2689 dollar against the greenback.
As on December 02, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 1.91130 per cent for one month, 2.22000 per cent for three months, 2.60630 per cent for six months and 2.77380 per cent for twelve months.
The inter-bank call money rate increased Tuesday despite injection of fresh cash through repurchase agreement (repo), as outflow of cash also took place through bills and bonds. The US dollar also gained against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to increased demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.25 per cent and 12.50 per cent against previous day's range of between 6.25 per cent and 12.00 per cent.
Most deals were, however, transacted at rates varying between 7.50 per cent and 9.50 per cent against previous day's range of 7.50 per cent and 9.00 per cent indicating higher pressure on liquidity, they said.
The call rate, however, rose above main trend in stray deals because of borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 3.48 billion on the day through auctions of reverse repo at an annual interest rate of 6.75 per cent.
Besides, it withdrew TYK 4.00 billion, including TYK 3.902 billion devolved to primary dealers, through Ten-Year Bangladesh Government Treasury Bonds at an annual interest rate 0f 11.72 per cent.
On the other hand, the central bank injected fresh cash amounting to Tk 15.77 billion into the market through repo auctions at an interest rate of 8.00 per cent that eased some pressure on liquidity. Earlier, the central bank injected Tk 13.725 billion, including Tk 3.94 billion to dealer banks as liquidity support, Monday at an annual interest rate of 8.75 per cent.
The dollar was stronger against taka in the inter-bank market due to increased demand for the foreign currency. The exchange rate of the greenback varied between Tk 68.85 and Tk 68.88 against previous trading day's range of between Tk 68.80 and Tk 68.85.
The market experienced moderate supply of the greenback, fund managers said.
The greenback also appeared stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 against previous trading day's range of between between Tk 67.80 and Tk 70.80.
In the informal market, the dollar remained steady and it was traded mainly at rates varying between Tk 68.00 and Tk 68.40 against previous day's range of between Tk 68.00 and Tk 68.30. The informal market experienced higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3810 and Tk 1.3842.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 49.87 and Rs 49.90 and the Pakistani rupee between Rs 78.50 and Rs 78.85. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6445 ringgit and 3.6470 ringgit and that against the Thai currency between 35.56 baht and 35.61 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 93.23 yen and 93.26 yen, while the euro moved between 1.2688 dollar and 1.2689 dollar against the greenback.
As on December 02, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 1.91130 per cent for one month, 2.22000 per cent for three months, 2.60630 per cent for six months and 2.77380 per cent for twelve months.