Call rate drops, dollar remains stable
FE Report | Thursday, 19 June 2008
The inter-bank call money rate dropped slightly Wednesday with sufficient flow of cash in the market. The US dollar, on the other hand, maintained its stable edge against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to modest demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 13.75 per cent against previous day's range of 8.00 per cent and 15.75 per cent.
Most deals were, however, transacted at rates between 8.50 per cent and 9.50 per cent against previous day's range of between 8.00 per cent and 10.00 per cent indicating lower pressure on liquidity.
The injection of Tk 14.655 billion, including Tk 9.79 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent put a staggered impact to improve liquidity position, fund managers said.
Banks mostly borrowed cash at rates confined to normal trend, while some banks and financial institutions resorted to overnight borrowing to meet urgent needs of their clients forcing the call rate to rise above normal level in stray deals, sources said.
The dollar appeared stable against taka in the inter-bank foreign exchange market, 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 was also unchanged in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 following previous trading day's range.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.70 and Tk 70.00 against previous day's range of between Tk 69.60 and Tk 70.00. 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 1.56 and Tk 1.77.
The call rate in extreme range moved between 8.00 per cent and 13.75 per cent against previous day's range of 8.00 per cent and 15.75 per cent.
Most deals were, however, transacted at rates between 8.50 per cent and 9.50 per cent against previous day's range of between 8.00 per cent and 10.00 per cent indicating lower pressure on liquidity.
The injection of Tk 14.655 billion, including Tk 9.79 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent put a staggered impact to improve liquidity position, fund managers said.
Banks mostly borrowed cash at rates confined to normal trend, while some banks and financial institutions resorted to overnight borrowing to meet urgent needs of their clients forcing the call rate to rise above normal level in stray deals, sources said.
The dollar appeared stable against taka in the inter-bank foreign exchange market, 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 was also unchanged in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 following previous trading day's range.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.70 and Tk 70.00 against previous day's range of between Tk 69.60 and Tk 70.00. 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 1.56 and Tk 1.77.