Call rate posts rise, dollar steady
FE Report | Tuesday, 22 July 2008
The inter-bank call money rate posted rise Monday despite injection of fresh cash into the market. The US dollar, on the other hand remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market mostly due to adequate supply of the greenback, fund managers said.
The call rate in extreme range moved between 7.00 per cent and 12.50 per cent against previous day's range of between 6.52 per cent and 12.25 per cent.
Most deals, however, were transacted at rates fluctuating between 7.50 per cent and 9.50 per cent against previous day's range of 7.00 per cent and 9.00 per cent posing increased pressure on liquidity.
The central bank injected fresh cash of Tk 13.32 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that improved liquidity position and averted the call rate from rising further, they said.
It, however, withdrew Tk 1.00 billion through reverse repo of one-day tenor at an interest rate of 6.50 per cent per annum that registered slight pressure on liquidity.
The borrowing cash by some banks and financial institutions at high rates to meet urgent needs of their clients forced the call rate to rise above main trend in stray deals, they said.
The dollar, however, remained unchanged against taka in the inter-bank foreign exchange market, as there was sufficient supply of the greenback while the demand for the greenback appeared steady.
The exchange rate of the dollar fluctuated between Tk 68.48 and Tk 68.53 in the inter-bank market maintaining previous trading day's range.
The dollar, however, was stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 70.20 against previous trading day's range of between Tk 67.42 and Tk 69.63.
In the informal market, the dollar, mostly maintained its steady level and it was traded at rates varying between Tk 70.00 and Tk 70.20 against previous day's range of between 69.90 and Tk 70.20. 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 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.67 and Rs 42.71 and the Pakistani rupee between Rs 70.60 and Rs 70.90. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2375 ringgit and 3.2390 ringgit and that against the Thai currency between 33.35 baht and 33.40 baht.
The call rate in extreme range moved between 7.00 per cent and 12.50 per cent against previous day's range of between 6.52 per cent and 12.25 per cent.
Most deals, however, were transacted at rates fluctuating between 7.50 per cent and 9.50 per cent against previous day's range of 7.00 per cent and 9.00 per cent posing increased pressure on liquidity.
The central bank injected fresh cash of Tk 13.32 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that improved liquidity position and averted the call rate from rising further, they said.
It, however, withdrew Tk 1.00 billion through reverse repo of one-day tenor at an interest rate of 6.50 per cent per annum that registered slight pressure on liquidity.
The borrowing cash by some banks and financial institutions at high rates to meet urgent needs of their clients forced the call rate to rise above main trend in stray deals, they said.
The dollar, however, remained unchanged against taka in the inter-bank foreign exchange market, as there was sufficient supply of the greenback while the demand for the greenback appeared steady.
The exchange rate of the dollar fluctuated between Tk 68.48 and Tk 68.53 in the inter-bank market maintaining previous trading day's range.
The dollar, however, was stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 70.20 against previous trading day's range of between Tk 67.42 and Tk 69.63.
In the informal market, the dollar, mostly maintained its steady level and it was traded at rates varying between Tk 70.00 and Tk 70.20 against previous day's range of between 69.90 and Tk 70.20. 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 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.67 and Rs 42.71 and the Pakistani rupee between Rs 70.60 and Rs 70.90. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2375 ringgit and 3.2390 ringgit and that against the Thai currency between 33.35 baht and 33.40 baht.