Call rate rises, dollar gains
Wednesday, 29 October 2008
FE Report
The inter-bank call money rate gained ground Tuesday despite withdrawal of cash through reverse repurchase agreement (repo) and government bonds. The US dollar also appeared stronger against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly due to supply constraint, fund managers said.
The call rate moved mainly between 6.00 per cent and 11.50 per cent against previous day's range of between 5.00 per cent and 11.50 per cent.
Most deals were transacted at rates varying between 6.50 per cent and 8.00 per cent against previous day's range of 6.00 per cent and 7.50 per cent that indicated slightly increased pressure on liquidity.
The call rate, however, rose above normal level in stray deals with borrowing cash at high rates from inter-bank market by some banks and financial institutions to meet urgent requirements of their clients, fund managers said.
The central bank withdrew more than Tk 10.95 billion on the day through reverse repo at an annual interest rate of 6.50 per cent. Besides, it withdrew Tk 1.25 billion through Bangladesh Government Treasury Bonds at an interest rate of 13.04 per cent per annum.
The dollar gained against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.60 and Tk 68.65 against previous trading day's range of between Tk 68.58 and Tk 68.60. The market was active because of higher import payment obligations. The greenback, however, lost ground in public deals and the cash dollar was transacted at rates varying between Tk 67.77 and Tk 70.80 against previous trading day's range of between Tk 67.87 and Tk 70.80.
In the informal market, the dollar was steady and it was traded mainly at rates varying between Tk 70.30 and Tk 70.50 against previous day's range of between Tk 70.20 and Tk 70.50. 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 1.3885 and Tk 1.3917.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.42 and Rs 49.45 and the Pakistani rupee between Rs 82.30 and Rs 84.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5580 ringgit and 3.5610 ringgit and that against the Thai currency between 34.92 baht and 35.02 baht.
The inter-bank call money rate gained ground Tuesday despite withdrawal of cash through reverse repurchase agreement (repo) and government bonds. The US dollar also appeared stronger against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly due to supply constraint, fund managers said.
The call rate moved mainly between 6.00 per cent and 11.50 per cent against previous day's range of between 5.00 per cent and 11.50 per cent.
Most deals were transacted at rates varying between 6.50 per cent and 8.00 per cent against previous day's range of 6.00 per cent and 7.50 per cent that indicated slightly increased pressure on liquidity.
The call rate, however, rose above normal level in stray deals with borrowing cash at high rates from inter-bank market by some banks and financial institutions to meet urgent requirements of their clients, fund managers said.
The central bank withdrew more than Tk 10.95 billion on the day through reverse repo at an annual interest rate of 6.50 per cent. Besides, it withdrew Tk 1.25 billion through Bangladesh Government Treasury Bonds at an interest rate of 13.04 per cent per annum.
The dollar gained against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.60 and Tk 68.65 against previous trading day's range of between Tk 68.58 and Tk 68.60. The market was active because of higher import payment obligations. The greenback, however, lost ground in public deals and the cash dollar was transacted at rates varying between Tk 67.77 and Tk 70.80 against previous trading day's range of between Tk 67.87 and Tk 70.80.
In the informal market, the dollar was steady and it was traded mainly at rates varying between Tk 70.30 and Tk 70.50 against previous day's range of between Tk 70.20 and Tk 70.50. 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 1.3885 and Tk 1.3917.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.42 and Rs 49.45 and the Pakistani rupee between Rs 82.30 and Rs 84.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5580 ringgit and 3.5610 ringgit and that against the Thai currency between 34.92 baht and 35.02 baht.