Call rate drops to record low, dollar stable
FE Report | Tuesday, 1 July 2008
The inter-bank call money rate dropped to a record low Monday ignoring withdrawal of cash from the market. The US dollar, however, retained its strength against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of steady demand for the greenback, fund managers said.
The call rate in extreme range moved between 2.00 per cent and 10.00 per cent against previous day's range of between 3.75 per cent and 11.00 per cent. The lower edge of the call rate on the day was the year's lowest.
Most deals were, however, transacted at rates between 3.00 per cent and 5.00 per cent against previous day's range of between 5.50 per cent and 6.50 per cent reflecting sharp fall in pressure on liquidity.
Banks were busy in financial year closings that led to lower transactions putting a diminishing pressure on liquidity, fund managers said.
The call rate, in stray deals, rose above the main trend, as some banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients, they said.
The central bank withdrew Tk 7.95 billion through reverse repurchase agreement at an annual interest rate of 6.50 per cent creating insignificant impact on liquidity.
The dollar was, however, steady against taka in inter-bank foreign exchange market due to moderate demand for the greenback, sources said.
The exchange rate of the dollar fluctuated between Tk 68.50 and Tk 68.53 maintaining previous trading day's range in the inter-bank market.
The dollar, however, marked gain in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.95 against previous trading day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.50 and Tk 69.90 against previous day's range of between 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 43.03 and Rs 43.05 and the Pakistani rupee between Rs 68.37 and Rs 68.38. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2675 ringgit and 3.2685 ringgit and that against the Thai currency between 33.45 baht and 33.48 baht.
The call rate in extreme range moved between 2.00 per cent and 10.00 per cent against previous day's range of between 3.75 per cent and 11.00 per cent. The lower edge of the call rate on the day was the year's lowest.
Most deals were, however, transacted at rates between 3.00 per cent and 5.00 per cent against previous day's range of between 5.50 per cent and 6.50 per cent reflecting sharp fall in pressure on liquidity.
Banks were busy in financial year closings that led to lower transactions putting a diminishing pressure on liquidity, fund managers said.
The call rate, in stray deals, rose above the main trend, as some banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients, they said.
The central bank withdrew Tk 7.95 billion through reverse repurchase agreement at an annual interest rate of 6.50 per cent creating insignificant impact on liquidity.
The dollar was, however, steady against taka in inter-bank foreign exchange market due to moderate demand for the greenback, sources said.
The exchange rate of the dollar fluctuated between Tk 68.50 and Tk 68.53 maintaining previous trading day's range in the inter-bank market.
The dollar, however, marked gain in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.95 against previous trading day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.50 and Tk 69.90 against previous day's range of between 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 43.03 and Rs 43.05 and the Pakistani rupee between Rs 68.37 and Rs 68.38. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2675 ringgit and 3.2685 ringgit and that against the Thai currency between 33.45 baht and 33.48 baht.