Call rate rises, dollar retains strength
Monday, 3 November 2008
FE Report
The inter-bank call money rate gained ground despite withdrawal of cash from the market through treasury bills and reverse repurchase agreement (repo). The US dollar also posted nominal gain 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 mainly between 6.50per cent and 11.50 per cent against previous day's range of between 4.40 per cent and 11.50 per cent.
Most deals were, however, made at rates varying between 6.50 per cent and 8.00 per cent against previous day's range of 6.00 per cent and 7.00 that reflected higher pressure on liquidity, they said.
Some banks and financial institutions, however, borrowed cash at high rates from inter-bank market to meet urgent requirements of their clients raising the call rate above main trend in stray deals, fund managers said.
The central bank withdrew Tk 1.63 billion through reverse repo at an annual interest rate of 6.50 per cent.
Besides, the government borrowed Tk 5.00 billion through auctions of treasury bills without putting any visible impact on liquidity.
The dollar remained mostly steady at high level against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.65 and Tk 68.66 against previous trading day's rate of Tk 68.65. The market was moderately active due to weekend in the international market.
The greenback, however, appeared soft in public deals and the cash dollar was transacted at rates varying between Tk 67.72 and Tk 70.75 against previous trading day's range of between Tk 67.82 and Tk 70.85.
In the informal market, the dollar was steady and it was traded mainly at rates varying between Tk 70.30 and Tk 70.60 against previous day's range of between Tk 70.20 and Tk 70.60. 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 1.3771 and Tk 1.3801.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.21 and Rs 49.23 and the Pakistani rupee between Rs 81.37 and Rs 82.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5395 ringgit and 3.5414 ringgit and that against the Thai currency between 35.05 baht and 35.07 baht.
The inter-bank call money rate gained ground despite withdrawal of cash from the market through treasury bills and reverse repurchase agreement (repo). The US dollar also posted nominal gain 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 mainly between 6.50per cent and 11.50 per cent against previous day's range of between 4.40 per cent and 11.50 per cent.
Most deals were, however, made at rates varying between 6.50 per cent and 8.00 per cent against previous day's range of 6.00 per cent and 7.00 that reflected higher pressure on liquidity, they said.
Some banks and financial institutions, however, borrowed cash at high rates from inter-bank market to meet urgent requirements of their clients raising the call rate above main trend in stray deals, fund managers said.
The central bank withdrew Tk 1.63 billion through reverse repo at an annual interest rate of 6.50 per cent.
Besides, the government borrowed Tk 5.00 billion through auctions of treasury bills without putting any visible impact on liquidity.
The dollar remained mostly steady at high level against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.65 and Tk 68.66 against previous trading day's rate of Tk 68.65. The market was moderately active due to weekend in the international market.
The greenback, however, appeared soft in public deals and the cash dollar was transacted at rates varying between Tk 67.72 and Tk 70.75 against previous trading day's range of between Tk 67.82 and Tk 70.85.
In the informal market, the dollar was steady and it was traded mainly at rates varying between Tk 70.30 and Tk 70.60 against previous day's range of between Tk 70.20 and Tk 70.60. 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 1.3771 and Tk 1.3801.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.21 and Rs 49.23 and the Pakistani rupee between Rs 81.37 and Rs 82.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5395 ringgit and 3.5414 ringgit and that against the Thai currency between 35.05 baht and 35.07 baht.