Call rate eases, dollar posts gain
Tuesday, 2 December 2008
FE Report
The inter-bank call money rate eased Monday although the central bank withdrew cash through reverse repurchase agreement (repo). The US dollar, however, posted visible gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 6.25 per cent and 12.00 per cent against previous day's range of between 7.25 per cent and 12.00 per cent.
Most deals were, however, made at rates varying between 7.50 per cent and 9.00 per cent against previous day's range of 7.50 per cent and 8.00 per cent indicating higher pressure on liquidity. Banks had to adjust payments against treasury bills, they said.
The borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients raised the call rate above the main trend in stray deals, fund managers said.
The central bank withdrew Tk 4.05 billion on the day through auctions of reverse repo at an annual interest rate of 6.75 per cent.
The dollar gained strength against taka in the inter-bank market due to increased demand for the foreign currency. The exchange rate of the greenback hovered between Tk 68.80 and Tk 68.85 against previous trading day's rate of Tk 68.80.
The market was active due to trading after weekend in the international market and higher import payments. The moderate supply of the greenback created demand-supply mismatch, fund managers said.
The greenback was, however, steady in public deals and the cash dollar was transacted at rates varying between Tk 67.80 and Tk 70.80 maintaining previous trading day's range.
In the informal market, the dollar fell significantly and it was traded mainly at rates varying between Tk 68.00 and Tk 68.30 against previous day's range of between Tk 69.50 and Tk 69.80. 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 1.3687 and Tk 1.3726.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 50.34 and Rs 50.37 and the Pakistani rupee between Rs 78.25 and Rs 78.70. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6425 ringgit and 3.6440 ringgit and that against the Thai currency between 35.48 baht and 35.51 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly hovered between 93.89 yen and 93.92 yen, while the euro moved between 1.2616 dollar and 1.2618 dollar against the greenback.
As on December 01, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.90120 per cent for one month, 2.21680 per cent for three months, 2.59120 per cent for six months, 2.68000 months for nine months and 2.76620 per cent for twelve months.
The inter-bank call money rate eased Monday although the central bank withdrew cash through reverse repurchase agreement (repo). The US dollar, however, posted visible gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 6.25 per cent and 12.00 per cent against previous day's range of between 7.25 per cent and 12.00 per cent.
Most deals were, however, made at rates varying between 7.50 per cent and 9.00 per cent against previous day's range of 7.50 per cent and 8.00 per cent indicating higher pressure on liquidity. Banks had to adjust payments against treasury bills, they said.
The borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients raised the call rate above the main trend in stray deals, fund managers said.
The central bank withdrew Tk 4.05 billion on the day through auctions of reverse repo at an annual interest rate of 6.75 per cent.
The dollar gained strength against taka in the inter-bank market due to increased demand for the foreign currency. The exchange rate of the greenback hovered between Tk 68.80 and Tk 68.85 against previous trading day's rate of Tk 68.80.
The market was active due to trading after weekend in the international market and higher import payments. The moderate supply of the greenback created demand-supply mismatch, fund managers said.
The greenback was, however, steady in public deals and the cash dollar was transacted at rates varying between Tk 67.80 and Tk 70.80 maintaining previous trading day's range.
In the informal market, the dollar fell significantly and it was traded mainly at rates varying between Tk 68.00 and Tk 68.30 against previous day's range of between Tk 69.50 and Tk 69.80. 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 1.3687 and Tk 1.3726.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 50.34 and Rs 50.37 and the Pakistani rupee between Rs 78.25 and Rs 78.70. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6425 ringgit and 3.6440 ringgit and that against the Thai currency between 35.48 baht and 35.51 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly hovered between 93.89 yen and 93.92 yen, while the euro moved between 1.2616 dollar and 1.2618 dollar against the greenback.
As on December 01, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.90120 per cent for one month, 2.21680 per cent for three months, 2.59120 per cent for six months, 2.68000 months for nine months and 2.76620 per cent for twelve months.