Call rate, dollar in soft mood
FE Report | Wednesday, 13 August 2008
The inter-bank call money rate closed slightly Tuesday due to injection of fresh cash into the market. The US dollar also showed downward trend against Bangladesh taka (BDT) in the inter-bank foreign exchange market on ample supply of the greenback, fund managers said.
The call rate moved between 6.50 per cent and 12.00 per cent against previous day's range of between 7.00 per cent and 15.00 per cent posing a downward bias.
Most deals were, however, made at rates varying between 8.00 per cent and 11.00 per cent against previous day's range of 8.00 per cent and 10.00 per cent indicating increased pressure on liquidity.
Banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that forced the call rate to move at high level, fund managers said.
The central bank injected fresh cash of Tk 8.76 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that reduced some pressure on liquidity.
It, however, withdrew Tk 1.50 billion through 15-year Bangladesh Government Treasury Bonds at an interest rate of 12.14 per cent per annum.
The dollar lost ground against taka and the exchange rate of the greenback fluctuated between Tk 68.50 and Tk 68.52 against previous trading day's range of between Tk 68.51 and Tk 68.52 in the inter-bank market.
The dollar also fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.85 against previous trading day's range of between Tk 67.42 and Tk 70.00.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 69.70 and Tk 70.10 against previous day's range of between 69.80 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.
The call rate moved between 6.50 per cent and 12.00 per cent against previous day's range of between 7.00 per cent and 15.00 per cent posing a downward bias.
Most deals were, however, made at rates varying between 8.00 per cent and 11.00 per cent against previous day's range of 8.00 per cent and 10.00 per cent indicating increased pressure on liquidity.
Banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that forced the call rate to move at high level, fund managers said.
The central bank injected fresh cash of Tk 8.76 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that reduced some pressure on liquidity.
It, however, withdrew Tk 1.50 billion through 15-year Bangladesh Government Treasury Bonds at an interest rate of 12.14 per cent per annum.
The dollar lost ground against taka and the exchange rate of the greenback fluctuated between Tk 68.50 and Tk 68.52 against previous trading day's range of between Tk 68.51 and Tk 68.52 in the inter-bank market.
The dollar also fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.85 against previous trading day's range of between Tk 67.42 and Tk 70.00.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 69.70 and Tk 70.10 against previous day's range of between 69.80 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.