Call rate gains ground, dollar stronger
Wednesday, 5 March 2008
FE Report
The inter-bank call money rate gained ground Tuesday although the central bank withdrew cash from the market. The US dollar also appeared stronger in the inter-bank foreign exchange, fund managers said.
The call rate in extreme range fluctuated between 8.00 per cent and 11.75 per cent against previous day's range of 6.50 per cent and 12.00 per cent.
In most deals, the rate, however, fluctuated between 8.50 per cent and 9.50 per cent against previous day's range of between 8.50 per cent and 10.00 per cent indicating almost steady pressure on liquidity, they said.
The call rate, however, rose above the normal level, as some commercial banks and financial institutions had to borrow cash at high rates in stray deals to meet urgent demands of their clients, fund managers said.
The central bank withdrew Tk 4.00 billion on the day through Bangladesh Government Treasury bonds, including Tk 1.7835 billion against bids and Tk 2.2165 billion that devolved to primary dealers, at an annual interest rate of 11.72 per cent.
The US dollar also gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The exchange rate of the dollar was confined to a single rate of Tk 68.58 against previous day's range of between Tk 68.56 and Tk 68.58 in the inter-bank market.
The dollar was, however, steady in public deals and it was transacted at rates varying between Tk 67.2263 and Tk 69.50 maintaining previous trading day's range.
In the informal market, the dollar was mostly stable and it was traded at rates varying between Tk 67.70 and Tk 68.20 against previous day's range of between Tk 67.80 and Tk 68.20. The informal market experienced high 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 40.12 and Rs 40.15 and the Pakistani rupee between Rs 62.75 and Rs 63.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.1894 ringgit and 3.1904 ringgit and that against the Thai currency between 31.60 baht and 31.70 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 103.15 yen and 103.18 yen, while the euro moved between 1.5214 yen and 1.5215 dollar against the greenback.
As on March 04, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 3.08620 per cent for one month, 3.01430 per cent for three months, 2.86250 per cent for six months, 2.70620 per cent for nine months and 2.62560 per cent for twelve months.
The inter-bank call money rate gained ground Tuesday although the central bank withdrew cash from the market. The US dollar also appeared stronger in the inter-bank foreign exchange, fund managers said.
The call rate in extreme range fluctuated between 8.00 per cent and 11.75 per cent against previous day's range of 6.50 per cent and 12.00 per cent.
In most deals, the rate, however, fluctuated between 8.50 per cent and 9.50 per cent against previous day's range of between 8.50 per cent and 10.00 per cent indicating almost steady pressure on liquidity, they said.
The call rate, however, rose above the normal level, as some commercial banks and financial institutions had to borrow cash at high rates in stray deals to meet urgent demands of their clients, fund managers said.
The central bank withdrew Tk 4.00 billion on the day through Bangladesh Government Treasury bonds, including Tk 1.7835 billion against bids and Tk 2.2165 billion that devolved to primary dealers, at an annual interest rate of 11.72 per cent.
The US dollar also gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The exchange rate of the dollar was confined to a single rate of Tk 68.58 against previous day's range of between Tk 68.56 and Tk 68.58 in the inter-bank market.
The dollar was, however, steady in public deals and it was transacted at rates varying between Tk 67.2263 and Tk 69.50 maintaining previous trading day's range.
In the informal market, the dollar was mostly stable and it was traded at rates varying between Tk 67.70 and Tk 68.20 against previous day's range of between Tk 67.80 and Tk 68.20. The informal market experienced high 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 40.12 and Rs 40.15 and the Pakistani rupee between Rs 62.75 and Rs 63.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.1894 ringgit and 3.1904 ringgit and that against the Thai currency between 31.60 baht and 31.70 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 103.15 yen and 103.18 yen, while the euro moved between 1.5214 yen and 1.5215 dollar against the greenback.
As on March 04, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 3.08620 per cent for one month, 3.01430 per cent for three months, 2.86250 per cent for six months, 2.70620 per cent for nine months and 2.62560 per cent for twelve months.