Call rate down, dollar stable
FE Report | Friday, 13 June 2008
The inter-bank call money rate closed lower Thursday although the market experienced higher demand for cash. The US dollar, however, maintained its earlier strength intact against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to intervention inflow of the greenback, fund managers said.
The call rate in extreme range fluctuated between 7.00 per cent and 11.00 per cent against previous day's range of 7.50 per cent and 12.00 per cent.
Most deals were, however, transacted at rates between 8.00 per cent and 10.00 per cent against previous day's range of between 7.50 per cent and 9.00 per cent reflecting increased pressure on liquidity.
The market was active on the day with high demand for cash. The flow of cash was also sufficient to easily meet rising demand for fund, as liquidity position of the market improved with staggered impact of liquidity support provided by the central bank, fund managers said.
Banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent needs of their clients forcing the call rate to move at high level, sources said.
The dollar was, however, stable against taka in the inter-bank foreign exchange market despite strong demand for the greenback, as the central bank applied its intervention measure for partly easing supply constraint to some selected banks, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 repeating previous trading day's range in the inter-bank market.
The dollar, however, appeared weaker in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.70 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.50 and Tk 69.90 against previous day's range of between Tk 69.60 and Tk 69.90. The informal market experienced moderate demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.68 and Rs 42.72 and the Pakistani rupee between Rs 66.90 and Rs 67.20. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2715 ringgit and 3.2740 ringgit and that against the Thai currency between 33.14 baht and 33.16 baht.
The call rate in extreme range fluctuated between 7.00 per cent and 11.00 per cent against previous day's range of 7.50 per cent and 12.00 per cent.
Most deals were, however, transacted at rates between 8.00 per cent and 10.00 per cent against previous day's range of between 7.50 per cent and 9.00 per cent reflecting increased pressure on liquidity.
The market was active on the day with high demand for cash. The flow of cash was also sufficient to easily meet rising demand for fund, as liquidity position of the market improved with staggered impact of liquidity support provided by the central bank, fund managers said.
Banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent needs of their clients forcing the call rate to move at high level, sources said.
The dollar was, however, stable against taka in the inter-bank foreign exchange market despite strong demand for the greenback, as the central bank applied its intervention measure for partly easing supply constraint to some selected banks, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 repeating previous trading day's range in the inter-bank market.
The dollar, however, appeared weaker in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.70 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.50 and Tk 69.90 against previous day's range of between Tk 69.60 and Tk 69.90. The informal market experienced moderate demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.68 and Rs 42.72 and the Pakistani rupee between Rs 66.90 and Rs 67.20. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2715 ringgit and 3.2740 ringgit and that against the Thai currency between 33.14 baht and 33.16 baht.