Call rate drops, dollar gains strength
Tuesday, 31 March 2009
FE Report
The inter-bank call money rate fell remarkably Monday due to excess liquidity in the market. The US dollar, on the other hand, gained against Bangladesh taka (BDT) in an active inter-bank foreign exchange market, fund managers said.
The call rate in extreme range moved mainly between 3.00 per cent and 10.50 per cent against previous trading day's range of between 7.50 per cent and 12.0 per cent.
Most deals were, however, transacted at rates varying between 4.00 per cent and 5.00 per cent against previous day's range of 7.50 per cent and 8.50 per cent reflecting visible decline in pressure on liquidity, they said.
The rate, however, rose above main trend in stray deals with borrowing of cash by some financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The market enjoyed excess liquidity, as central bank refrained from withdrawing cash from the market through reverse repurchase agreement (repo) for the last four sessions, they said.
The dollar gained strength against taka and the exchange rate of the dollar ranged between Tk 69.02 and Tk 69.06 against previous trading day's rate of Tk 69.03.
The market remained active due to resumption of trading in the international market following weekend.
The greenback was also steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 69.60 maintaining previous trading day's range.
In the informal market, the dollar remained mostly steady and it was traded mainly at rates varying between Tk 68.0 and Tk 68.30 against previous day's range of between Tk 68.10 and Tk 68.30. The informal market experienced moderate demand for the foreign currency, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.2957 and Tk 1.3560.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 51.42 and Rs 51.72 and the Pakistani rupee between Rs 79.85 and Rs 80.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6087 ringgit and 3.6366 ringgit and that against the Thai currency between 34.90 baht and 35.90 baht.
The inter-bank call money rate fell remarkably Monday due to excess liquidity in the market. The US dollar, on the other hand, gained against Bangladesh taka (BDT) in an active inter-bank foreign exchange market, fund managers said.
The call rate in extreme range moved mainly between 3.00 per cent and 10.50 per cent against previous trading day's range of between 7.50 per cent and 12.0 per cent.
Most deals were, however, transacted at rates varying between 4.00 per cent and 5.00 per cent against previous day's range of 7.50 per cent and 8.50 per cent reflecting visible decline in pressure on liquidity, they said.
The rate, however, rose above main trend in stray deals with borrowing of cash by some financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The market enjoyed excess liquidity, as central bank refrained from withdrawing cash from the market through reverse repurchase agreement (repo) for the last four sessions, they said.
The dollar gained strength against taka and the exchange rate of the dollar ranged between Tk 69.02 and Tk 69.06 against previous trading day's rate of Tk 69.03.
The market remained active due to resumption of trading in the international market following weekend.
The greenback was also steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 69.60 maintaining previous trading day's range.
In the informal market, the dollar remained mostly steady and it was traded mainly at rates varying between Tk 68.0 and Tk 68.30 against previous day's range of between Tk 68.10 and Tk 68.30. The informal market experienced moderate demand for the foreign currency, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.2957 and Tk 1.3560.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 51.42 and Rs 51.72 and the Pakistani rupee between Rs 79.85 and Rs 80.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6087 ringgit and 3.6366 ringgit and that against the Thai currency between 34.90 baht and 35.90 baht.