Call rate posts sharp rise, dollar soft
FE Report | Friday, 1 August 2008
The inter-bank call money rate posted sharp rise Thursday despite injection of fresh cash into the market, as demand for fund surged with needs for month-end internal adjustments. The US dollar, on the other hand, appeared slightly soft against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to sufficient supply of the greenback, fund managers said.
The call rate moved between 8.00 per cent and 20.00 per cent against previous day's range of between 7.00 per cent and 13.50 per cent.
Most deals were, however, made at rates varying between 10.00 per cent and 20.00 per cent against previous day's range of 7.50 per cent and 10.00 per cent indicating sharp rise in pressure on liquidity.
Most banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that forced the call rate to move mostly at high level, fund managers said.
The decision of the central bank to use its tools cautiously for improving discipline created impact on inter-bank market behaviour, they added.
The central bank, however, injected fresh cash of Tk 15.105 billion, Tk 3.815 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) at an annual interest rate of 8.50 per cent.
It, on the contrary, withdrew Tk 830 million only conducting reverse repo auctions at an interest rate of 6.50 per cent per annum.
The dollar, however, lost its ground against taka and the exchange rate of the greenback ranged between Tk 68.51 and Tk 68.52 against previous day's rate of Tk 68.52 in the inter-bank market.
The dollar remained steady in public deals and the cash dollar was transacted at rates varying between Tk 67.43 and Tk 69.75 maintaining previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.70 and Tk 70.10 against previous day's range of between 69.80 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market experienced moderate demand for the greenback helping easy maintenance of demand-supply balance, fund managers 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 42.50 and Rs 42.51 and the Pakistani rupee between Rs 71.37 and Rs 71.75.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2575 ringgit and 3.2585 ringgit and that against the Thai currency between 33.48 baht and 33.53 baht.
The call rate moved between 8.00 per cent and 20.00 per cent against previous day's range of between 7.00 per cent and 13.50 per cent.
Most deals were, however, made at rates varying between 10.00 per cent and 20.00 per cent against previous day's range of 7.50 per cent and 10.00 per cent indicating sharp rise in pressure on liquidity.
Most banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that forced the call rate to move mostly at high level, fund managers said.
The decision of the central bank to use its tools cautiously for improving discipline created impact on inter-bank market behaviour, they added.
The central bank, however, injected fresh cash of Tk 15.105 billion, Tk 3.815 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) at an annual interest rate of 8.50 per cent.
It, on the contrary, withdrew Tk 830 million only conducting reverse repo auctions at an interest rate of 6.50 per cent per annum.
The dollar, however, lost its ground against taka and the exchange rate of the greenback ranged between Tk 68.51 and Tk 68.52 against previous day's rate of Tk 68.52 in the inter-bank market.
The dollar remained steady in public deals and the cash dollar was transacted at rates varying between Tk 67.43 and Tk 69.75 maintaining previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.70 and Tk 70.10 against previous day's range of between 69.80 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market experienced moderate demand for the greenback helping easy maintenance of demand-supply balance, fund managers 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 42.50 and Rs 42.51 and the Pakistani rupee between Rs 71.37 and Rs 71.75.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2575 ringgit and 3.2585 ringgit and that against the Thai currency between 33.48 baht and 33.53 baht.