Call rate loses ground, dollar gains strength
Tuesday, 28 October 2008
FE Report
The inter-bank call money rate remained steady Monday although the central bank withdrew cash through reverse repurchase agreement (repo). The US dollar, however, posted gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate supply of the greenback, fund managers said.
The call rate moved mainly between 5.00 per cent and 11.50 per cent against previous day's range of between 5.50 per cent and 11.00 per cent.
Most deals were, however, transacted at rates varying between 6.00 per cent and 7.50 per cent against previous day's range of 6.00 per cent and 7.00 per cent indicating steady pressure on liquidity.
The call rate moved above main trend in stray deals with some banks and financial institutions borrowing cash at high rates from inter-bank market to meet urgent requirements of their clients, fund managers said.
The central bank withdrew more than Tk 16.00 billion on the day through reverse repo at an annual interest rate of 6.50 per cent. The withdrawal left negligible impact on liquidity, they said.
The dollar, on the other hand, gained strength against taka in the inter-bank market and the exchange rate of the greenback hovered between Tk 68.58 and Tk 68.60 against previous trading day's range of between Tk 68.56 and Tk 68.58. The market was active due to beginning of trading in the international market after weekend.
Besides, the greenback also gained ground in public deals and the cash dollar was transacted at rates varying between Tk 67.87 and Tk 70.80 against previous trading day's range of between Tk 67.77 and Tk 70.80.
In the informal market, the dollar, however, was mostly steady and it was traded mainly at rates varying between Tk 70.20 and Tk 70.50 against previous day's range of between Tk 70.20 and Tk 70.60. 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 1.3718 and Tk 1.3750.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 50.02 and Rs 50.05 and the Pakistani rupee between Rs 81.25 and Rs 83.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6200 ringgit and 3.6350 ringgit and that against the Thai currency between 34.77 baht and 34.82 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 92.99 yen and 93.02 yen, while the euro moved between 1.2446 dollar and 1.2448 dollar against the greenback.
As on October 27, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 3.24000 per cent for one month, 3.51620 per cent for three months, 3.52750 per cent for six months, 3.51310 per cent for nine months and 3.50870 per cent for twelve months.
The inter-bank call money rate remained steady Monday although the central bank withdrew cash through reverse repurchase agreement (repo). The US dollar, however, posted gain against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate supply of the greenback, fund managers said.
The call rate moved mainly between 5.00 per cent and 11.50 per cent against previous day's range of between 5.50 per cent and 11.00 per cent.
Most deals were, however, transacted at rates varying between 6.00 per cent and 7.50 per cent against previous day's range of 6.00 per cent and 7.00 per cent indicating steady pressure on liquidity.
The call rate moved above main trend in stray deals with some banks and financial institutions borrowing cash at high rates from inter-bank market to meet urgent requirements of their clients, fund managers said.
The central bank withdrew more than Tk 16.00 billion on the day through reverse repo at an annual interest rate of 6.50 per cent. The withdrawal left negligible impact on liquidity, they said.
The dollar, on the other hand, gained strength against taka in the inter-bank market and the exchange rate of the greenback hovered between Tk 68.58 and Tk 68.60 against previous trading day's range of between Tk 68.56 and Tk 68.58. The market was active due to beginning of trading in the international market after weekend.
Besides, the greenback also gained ground in public deals and the cash dollar was transacted at rates varying between Tk 67.87 and Tk 70.80 against previous trading day's range of between Tk 67.77 and Tk 70.80.
In the informal market, the dollar, however, was mostly steady and it was traded mainly at rates varying between Tk 70.20 and Tk 70.50 against previous day's range of between Tk 70.20 and Tk 70.60. 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 1.3718 and Tk 1.3750.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 50.02 and Rs 50.05 and the Pakistani rupee between Rs 81.25 and Rs 83.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.6200 ringgit and 3.6350 ringgit and that against the Thai currency between 34.77 baht and 34.82 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 92.99 yen and 93.02 yen, while the euro moved between 1.2446 dollar and 1.2448 dollar against the greenback.
As on October 27, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 3.24000 per cent for one month, 3.51620 per cent for three months, 3.52750 per cent for six months, 3.51310 per cent for nine months and 3.50870 per cent for twelve months.