Call rate rises again, dollar steady
FE Report | Friday, 6 June 2008
The inter-bank call money rate marked rise Thursday ignoring central bank's use of repurchase agreement tool to inject large amount of fresh cash into the market. The US dollar, however, remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market on moderate demand for the greenback, fund managers said.
The call rate in extreme range moved between 7.75 per cent and 20.00 per cent against previous day's range of 6.75 per cent and 15.00 per cent.
Most deals were, however, transacted at rates between 10.00 per cent and 14.00 per cent against previous day's range of between 8.00 per cent and 9.00 per cent evidently projecting increased pressure on liquidity.
High demand for cash kept the market active. Most banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent demands of their clients. It forced the call rate to move mostly at high levels, sources said.
The central bank injected fresh cash of Tk 18.525 billion, including Tk 14.105 billion as liquidity support to primary dealers, into the market through repo auctions at an interest rate of 8.50 per cent per annum. It supported the liquidity and prevented the call rate from rising further, fund managers said.
The dollar was, however, stable against taka in the inter-bank foreign exchange market due to steady import payment obligations, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 repeating previous trading day's range in the inter-bank market.
The dollar was also stable in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.94 maintaining previous day's range.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.40 and Tk 69.90 against previous day's range of between Tk 69.30 and Tk 69.90. The informal market experienced moderate 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 42.45 and Rs 42.50 and the Pakistani rupee between Rs 67.20 and Rs 67.7. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2580 ringgit and 3.2600 ringgit and that against the Thai currency between 32.84 baht and 32.87 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 106.33 yen and 106.36 yen, while the euro moved between 1.5381 dollar and 1.5382 dollar against the greenback.
As on June 05, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45000 per cent for one month, 2.67190 per cent for three months, 2.89130 per cent for six months, 2.98680 per cent for nine months and 3.09750 per cent for twelve months.
The call rate in extreme range moved between 7.75 per cent and 20.00 per cent against previous day's range of 6.75 per cent and 15.00 per cent.
Most deals were, however, transacted at rates between 10.00 per cent and 14.00 per cent against previous day's range of between 8.00 per cent and 9.00 per cent evidently projecting increased pressure on liquidity.
High demand for cash kept the market active. Most banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent demands of their clients. It forced the call rate to move mostly at high levels, sources said.
The central bank injected fresh cash of Tk 18.525 billion, including Tk 14.105 billion as liquidity support to primary dealers, into the market through repo auctions at an interest rate of 8.50 per cent per annum. It supported the liquidity and prevented the call rate from rising further, fund managers said.
The dollar was, however, stable against taka in the inter-bank foreign exchange market due to steady import payment obligations, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 repeating previous trading day's range in the inter-bank market.
The dollar was also stable in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.94 maintaining previous day's range.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.40 and Tk 69.90 against previous day's range of between Tk 69.30 and Tk 69.90. The informal market experienced moderate 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 42.45 and Rs 42.50 and the Pakistani rupee between Rs 67.20 and Rs 67.7. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2580 ringgit and 3.2600 ringgit and that against the Thai currency between 32.84 baht and 32.87 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 106.33 yen and 106.36 yen, while the euro moved between 1.5381 dollar and 1.5382 dollar against the greenback.
As on June 05, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45000 per cent for one month, 2.67190 per cent for three months, 2.89130 per cent for six months, 2.98680 per cent for nine months and 3.09750 per cent for twelve months.