Call rate drops, dollar stable
Thursday, 10 January 2008
FE Report
The inter-bank call money rate dropped further Wednesday in the inter-bank market, but the US dollar maintained stable nerve, fund managers said.
The lower edge of the call rate touched 3.00 per cent mark against that of 4.00 per cent of previous day clearly showing slide on the day, they said.
The call rate moved between 3.00 per cent and 10.00 per cent against the previous day's range of between 4.00 per cent and 10.00 per cent in extreme fluctuations. In normal trend, most deals were, however, held at rates varying between 4.00 per cent and 5.00 per cent against previous day's 5.00 per cent and 6.00 per cent, fund managers said.
The moderate demand for cash and the high liquidity of the market combined to force the call rate move downward. The rate rose above normal trend in limited deals when some banks and non-banking financial institutions borrowed cash from inter-bank market at high rates to meet immediate requirements of their clients, fund managers said.
The US dollar, on the other hand, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market. The exchange rate stood at Tk 68.58 repeating previous day's rate, fund managers said.
The dollar was also steady in public deals and it was exchanged at rates varying between Tk 67.25 and Tk 69.65 maintaining previous day's range.
The inter-bank call money rate dropped further Wednesday in the inter-bank market, but the US dollar maintained stable nerve, fund managers said.
The lower edge of the call rate touched 3.00 per cent mark against that of 4.00 per cent of previous day clearly showing slide on the day, they said.
The call rate moved between 3.00 per cent and 10.00 per cent against the previous day's range of between 4.00 per cent and 10.00 per cent in extreme fluctuations. In normal trend, most deals were, however, held at rates varying between 4.00 per cent and 5.00 per cent against previous day's 5.00 per cent and 6.00 per cent, fund managers said.
The moderate demand for cash and the high liquidity of the market combined to force the call rate move downward. The rate rose above normal trend in limited deals when some banks and non-banking financial institutions borrowed cash from inter-bank market at high rates to meet immediate requirements of their clients, fund managers said.
The US dollar, on the other hand, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market. The exchange rate stood at Tk 68.58 repeating previous day's rate, fund managers said.
The dollar was also steady in public deals and it was exchanged at rates varying between Tk 67.25 and Tk 69.65 maintaining previous day's range.