Call rate rises, dollar soft
FE Report | Monday, 21 July 2008
The inter-bank call money rate rose Sunday, as withdrawal of fund surpassed the fresh cash injected that put some pressure on liquidity. The US dollar, however, lost ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly due to moderate demand for the greenback, fund managers said.
The call rate in extreme range moved between 6.52 per cent and 12.25 per cent against previous day's range of between 6.50 per cent and 10.25 per cent.
Most deals, however, were transacted at rates varying between 7.00 per cent and 9.00 per cent against previous day's range of 7.00 per cent and 8.00 per cent reflecting slightly higher pressure on liquidity.
The government borrowed Tk 9.00 billion from the market through auctions of treasury bills putting some pressure on liquidity.
The central bank, however, injected fresh cash of Tk 8.75 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that partly eased the pressure on liquidity and prevented the call rate from further rising, fund managers said.
Some banks and financial institutions, however, borrowed cash at high rates to meet urgent needs of their clients that influenced the call rate to move above main trend in stray deals, they said.
The dollar, on the other hand, appeared soft against taka in the inter-bank foreign exchange market because of steady demand for the greenback.
The market was moderately active due to weekend in the international market.
The exchange rate of the dollar fluctuated between Tk 68.48 and Tk 68.53 in the inter-bank market against previous trading day's range of between Tk 68.50 and Tk 68.53.
The dollar, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 against previous trading day's range of between Tk 67.42 and Tk 69.55.
In the informal market, the dollar, appeared mostly steady and it was traded at rates varying between Tk 69.90 and Tk 70.20 against previous day's range of between 70.00 and Tk 70.20.
The call rate in extreme range moved between 6.52 per cent and 12.25 per cent against previous day's range of between 6.50 per cent and 10.25 per cent.
Most deals, however, were transacted at rates varying between 7.00 per cent and 9.00 per cent against previous day's range of 7.00 per cent and 8.00 per cent reflecting slightly higher pressure on liquidity.
The government borrowed Tk 9.00 billion from the market through auctions of treasury bills putting some pressure on liquidity.
The central bank, however, injected fresh cash of Tk 8.75 billion through repurchase agreement (repo) at an annual interest rate of 8.50 per cent that partly eased the pressure on liquidity and prevented the call rate from further rising, fund managers said.
Some banks and financial institutions, however, borrowed cash at high rates to meet urgent needs of their clients that influenced the call rate to move above main trend in stray deals, they said.
The dollar, on the other hand, appeared soft against taka in the inter-bank foreign exchange market because of steady demand for the greenback.
The market was moderately active due to weekend in the international market.
The exchange rate of the dollar fluctuated between Tk 68.48 and Tk 68.53 in the inter-bank market against previous trading day's range of between Tk 68.50 and Tk 68.53.
The dollar, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 against previous trading day's range of between Tk 67.42 and Tk 69.55.
In the informal market, the dollar, appeared mostly steady and it was traded at rates varying between Tk 69.90 and Tk 70.20 against previous day's range of between 70.00 and Tk 70.20.