Call rate posts sharp rise, dollar stable
FE Report | Friday, 8 August 2008
The inter-bank call money rate posted sharp rise Thursday ignoring injection of fresh cash, as the market experienced strong demand for fund on month-end adjustments. The US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for 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 12.00 per cent.
Most deals were, however, made at rates varying between 8.00 per cent and 14.00 per cent against previous day's range of 8.00 per cent and 9.00 per cent that posed significant pressure on liquidity.
Most banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that resulted in sharp rise of the call rate, fund managers said.
The central bank injected fresh cash of Tk 19.915 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent. On the other hand, it withdrew Tk 830 million on the day with auctions of reverse repo at an interest rate of 6.50 per cent per annum.
The dollar, however, maintained its stable nerve against taka and the exchange rate of the greenback moved between Tk 68.51 and Tk 68.52 coinciding with previous day's rate in the inter-bank market.
The dollar was mostly stable in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 maintaining previous trading day's range.
In the informal market, the dollar was also steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. 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 continued to fluctuate 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 42.21 and Rs 42.22 and the Pakistani rupee between Rs 72.10 and Rs 72.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2905 ringgit and 3.2910 ringgit and that against the Thai currency between 33.58 baht and 33.61 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 109.31 yen and 109.34 yen, while the euro moved between 1.5400 dollar and 1.5402 dollar against the greenback.
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 12.00 per cent.
Most deals were, however, made at rates varying between 8.00 per cent and 14.00 per cent against previous day's range of 8.00 per cent and 9.00 per cent that posed significant pressure on liquidity.
Most banks and financial institutions borrowed cash at high rates to meet urgent needs of their clients that resulted in sharp rise of the call rate, fund managers said.
The central bank injected fresh cash of Tk 19.915 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent. On the other hand, it withdrew Tk 830 million on the day with auctions of reverse repo at an interest rate of 6.50 per cent per annum.
The dollar, however, maintained its stable nerve against taka and the exchange rate of the greenback moved between Tk 68.51 and Tk 68.52 coinciding with previous day's rate in the inter-bank market.
The dollar was mostly stable in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 maintaining previous trading day's range.
In the informal market, the dollar was also steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. 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 continued to fluctuate 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 42.21 and Rs 42.22 and the Pakistani rupee between Rs 72.10 and Rs 72.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2905 ringgit and 3.2910 ringgit and that against the Thai currency between 33.58 baht and 33.61 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 109.31 yen and 109.34 yen, while the euro moved between 1.5400 dollar and 1.5402 dollar against the greenback.