Call rate gains ground, dollar eases
Tuesday, 25 December 2007
FE Report
The inter-bank call money rate gained ground although its upper edge eased slightly responding to interventions of the central bank. The rate touched its peak at 15.50 per cent against previous day's high at 16.50 per cent on the day, fund managers said.
The US dollar, however, closed slightly lower on the day with its upper level ending at Tk 68.58 against previous trading day's high at Tk 68.60.
The central bank injected fresh cash into the market using repurchase agreement tool, but it, in contrast, withdrew cash holding auctions of Bangladesh Government Treasury (BGT) bonds.
The market remained moderately active with limited retail customers because of festival inertia and delay in rechaannelling of cash to the banking system, banking sector sources said.
The prevailing pressure on liquidity was due to borrowing of cash by some banks and non-banking financial institutions from the inter-bank market to meet immediate demand of their clients, they said.
Bankers forecast continuation of the current trend in money market up to the middle of next week, they added.
The call rate in its extreme range moved between 8.50 per cent and 15.50 per cent against previous day's range of between 7.50 per cent and 16.50, fund managers said.
In most deals, the rates, however, moved between 10.00 per cent and 13.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent in the inter-bank market, they added.
The US dollar was, on the other hand, marked nominal drop against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market because of comfortable supply and limited demand, fund managers said.
The exchange rate of the dollar varied between Tk 68.48 and Tk 68.58 against the previous day's range of between Tk 68.48 and Tk 68.60 in the inter-bank foreign exchange market.
The greenback was, however, gained in public deals and the cash dollar was exchanged at rates varying between Tk 67.55 and Tk 69.75 against previous day's range of between Tk 67.48 and Tk 69.75.
In the informal market, the dollar rose and it was traded at rates ranging between Tk 68.10 and Tk 68.50 against the previous day's range of between Tk 67.20 and Tk 67.60. The informal market experienced higher demand for the dollar 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, the exchange rate of the dollar against the Indian rupee moved between Rs 39.48 and Rs 39.50 and the Pakistani rupee between Rs 60.85 and Rs 61.05. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3360 ringgit and 3.3400 ringgit, and that against the Thai currency between 30.30 baht and 30.50 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 114.14 yen and 114.17 yen, while the euro moved between 1.4400 dollar and 1.4402 dollar against the greenback.
As on December 24, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.86500 per cent for one month, 4.85750 per cent for three months, 4.42750 per cent for six months and 4.31750 per cent for twelve months.
The inter-bank call money rate gained ground although its upper edge eased slightly responding to interventions of the central bank. The rate touched its peak at 15.50 per cent against previous day's high at 16.50 per cent on the day, fund managers said.
The US dollar, however, closed slightly lower on the day with its upper level ending at Tk 68.58 against previous trading day's high at Tk 68.60.
The central bank injected fresh cash into the market using repurchase agreement tool, but it, in contrast, withdrew cash holding auctions of Bangladesh Government Treasury (BGT) bonds.
The market remained moderately active with limited retail customers because of festival inertia and delay in rechaannelling of cash to the banking system, banking sector sources said.
The prevailing pressure on liquidity was due to borrowing of cash by some banks and non-banking financial institutions from the inter-bank market to meet immediate demand of their clients, they said.
Bankers forecast continuation of the current trend in money market up to the middle of next week, they added.
The call rate in its extreme range moved between 8.50 per cent and 15.50 per cent against previous day's range of between 7.50 per cent and 16.50, fund managers said.
In most deals, the rates, however, moved between 10.00 per cent and 13.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent in the inter-bank market, they added.
The US dollar was, on the other hand, marked nominal drop against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market because of comfortable supply and limited demand, fund managers said.
The exchange rate of the dollar varied between Tk 68.48 and Tk 68.58 against the previous day's range of between Tk 68.48 and Tk 68.60 in the inter-bank foreign exchange market.
The greenback was, however, gained in public deals and the cash dollar was exchanged at rates varying between Tk 67.55 and Tk 69.75 against previous day's range of between Tk 67.48 and Tk 69.75.
In the informal market, the dollar rose and it was traded at rates ranging between Tk 68.10 and Tk 68.50 against the previous day's range of between Tk 67.20 and Tk 67.60. The informal market experienced higher demand for the dollar 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, the exchange rate of the dollar against the Indian rupee moved between Rs 39.48 and Rs 39.50 and the Pakistani rupee between Rs 60.85 and Rs 61.05. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3360 ringgit and 3.3400 ringgit, and that against the Thai currency between 30.30 baht and 30.50 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 114.14 yen and 114.17 yen, while the euro moved between 1.4400 dollar and 1.4402 dollar against the greenback.
As on December 24, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.86500 per cent for one month, 4.85750 per cent for three months, 4.42750 per cent for six months and 4.31750 per cent for twelve months.