Call rate gains ground, dollar posts gain
Wednesday, 26 November 2008
FE Report
The inter-bank call money rate gained ground slightly Tuesday due to withdrawal of cash through reverse repurchase agreement (repo) and government bonds. The US dollar also gained against Bangladesh taka (BDT) in the inter-bank foreign exchange market on higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.0 per cent and 12.0 per cent against previous day's range of between 6.0 per cent and 12.0 per cent.
Most deals were, however, transacted at rates varying between 8.0 per cent and 9.0 per cent against previous day's range of 7.50 per cent and 8.75 per cent indicating slightly increased pressure on liquidity, they said.
The call rate rose above normal level in stray deals with borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 3.46 billion on the day through auctions reverse repo at an annual interest rate of 6.75 per cent putting some pressure on liquidity.
The dollar appeared stronger against taka in the inter-bank market and the exchange rate of the greenback ranged between Tk 68.77 and Tk 68.80 against previous trading day's range of between Tk 68.75 and Tk 68.77.
The greenback, however, remained steady in public deals and the cash dollar was transacted at rates varying between Tk 67.80 and Tk 70.75 maintaining previous trading day's range.
In the informal market, the dollar also fell and it was traded mainly at rates varying between Tk 69.60 and Tk 69.80 against previous day's range of between Tk 69.50 and Tk 69.80. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3865 and Tk 1.3910.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 49.82 and Rs 49.85 and the Pakistani rupee between Rs 78.85 and Rs 79.10. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6225 ringgit and 3.6240 ringgit and that against the Thai currency between 35.23 baht and 35.27 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 96.005 yen and 96.03 yen, while the euro moved between 1.2813 dollar and 1.2815 dollar against the greenback.
As on November 25, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.41120 per cent for one month, 2.16870 per cent for three months, 2.57500 per cent for six months, 2.66370 per cent for nine months and 2.75870 per cent for twelve months.
The inter-bank call money rate gained ground slightly Tuesday due to withdrawal of cash through reverse repurchase agreement (repo) and government bonds. The US dollar also gained against Bangladesh taka (BDT) in the inter-bank foreign exchange market on higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.0 per cent and 12.0 per cent against previous day's range of between 6.0 per cent and 12.0 per cent.
Most deals were, however, transacted at rates varying between 8.0 per cent and 9.0 per cent against previous day's range of 7.50 per cent and 8.75 per cent indicating slightly increased pressure on liquidity, they said.
The call rate rose above normal level in stray deals with borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 3.46 billion on the day through auctions reverse repo at an annual interest rate of 6.75 per cent putting some pressure on liquidity.
The dollar appeared stronger against taka in the inter-bank market and the exchange rate of the greenback ranged between Tk 68.77 and Tk 68.80 against previous trading day's range of between Tk 68.75 and Tk 68.77.
The greenback, however, remained steady in public deals and the cash dollar was transacted at rates varying between Tk 67.80 and Tk 70.75 maintaining previous trading day's range.
In the informal market, the dollar also fell and it was traded mainly at rates varying between Tk 69.60 and Tk 69.80 against previous day's range of between Tk 69.50 and Tk 69.80. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3865 and Tk 1.3910.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 49.82 and Rs 49.85 and the Pakistani rupee between Rs 78.85 and Rs 79.10. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6225 ringgit and 3.6240 ringgit and that against the Thai currency between 35.23 baht and 35.27 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 96.005 yen and 96.03 yen, while the euro moved between 1.2813 dollar and 1.2815 dollar against the greenback.
As on November 25, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.41120 per cent for one month, 2.16870 per cent for three months, 2.57500 per cent for six months, 2.66370 per cent for nine months and 2.75870 per cent for twelve months.