Call rate rises, dollar stays stable
FE Report | Tuesday, 17 June 2008
The inter-bank call money rate rose Monday with increased demand for cash on internal adjustments. US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market despite higher demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 15.75 per cent against the previous day's range between 7.25 per cent and 11.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 11.00 per cent against the previous day's range between 7.50 per cent and 9.00 per cent indicating a strong pressure on liquidity.
The staggered impact of withdrawing cash Sunday from the market through reverse repurchase agreement and treasury bills amounting to a grand total of Tk 13.42 billion created pressure on liquidity. Banks also needed cash to make routine internal adjustment putting pressure on liquidity, fund managers said.
Banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent needs of their clients pushing the call rate to move to upper level, sources said.
Dollar, on the other hand, was stable against taka in the inter-bank foreign exchange market although demand for the greenback appeared high with beginning of trading in the international marker after weekend, fund managers said.
The exchange rate of dollar moved between Tk 68.50 and Tk 68.53 maintaining the previous trading day's range in the inter-bank market.
Dollar, however, showed an upward bias in public deals and cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.75 against the previous trading day's range between Tk 67.25 and Tk 69.70.
In the informal market, dollar, however, gained and it was traded at rates varying between Tk 69.70 and Tk 70.00 against the previous day's range between Tk 69.60 and Tk 69.90. The informal market experienced a higher demand for the foreign currency on the day, money dealers said.
The exchange rate of Indian rupee against taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of dollar against Indian rupee moved between Rs 42.73 and Rs 42.77 and Pakistani rupee between Rs 66.30 and Rs 66.50. Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2715 ringgit and 3.2735 ringgit and that against the Thai currency between 33.25 baht and 33.30 baht.
In the international market, the exchange rate of dollar against Japanese yen mainly varied between 107.99 yen and 108.01 yen, while euro moved between 1.5518 dollar and 1.5520 dollar against the greenback.
As on June 16, 2008, the London Inter-Bank Offered Rates (LIBOR) against US dollar were 2.48180 per cent for one month, 2.81375 per cent for three months, 3.25500 per cent for six months, 3.49120 per cent for nine months and 3.68125 per cent for twelve months.
The call rate in extreme range moved between 8.00 per cent and 15.75 per cent against the previous day's range between 7.25 per cent and 11.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 11.00 per cent against the previous day's range between 7.50 per cent and 9.00 per cent indicating a strong pressure on liquidity.
The staggered impact of withdrawing cash Sunday from the market through reverse repurchase agreement and treasury bills amounting to a grand total of Tk 13.42 billion created pressure on liquidity. Banks also needed cash to make routine internal adjustment putting pressure on liquidity, fund managers said.
Banks and financial institutions had to borrow cash at high rates from the inter-bank market to meet urgent needs of their clients pushing the call rate to move to upper level, sources said.
Dollar, on the other hand, was stable against taka in the inter-bank foreign exchange market although demand for the greenback appeared high with beginning of trading in the international marker after weekend, fund managers said.
The exchange rate of dollar moved between Tk 68.50 and Tk 68.53 maintaining the previous trading day's range in the inter-bank market.
Dollar, however, showed an upward bias in public deals and cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.75 against the previous trading day's range between Tk 67.25 and Tk 69.70.
In the informal market, dollar, however, gained and it was traded at rates varying between Tk 69.70 and Tk 70.00 against the previous day's range between Tk 69.60 and Tk 69.90. The informal market experienced a higher demand for the foreign currency on the day, money dealers said.
The exchange rate of Indian rupee against taka fluctuated between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of dollar against Indian rupee moved between Rs 42.73 and Rs 42.77 and Pakistani rupee between Rs 66.30 and Rs 66.50. Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2715 ringgit and 3.2735 ringgit and that against the Thai currency between 33.25 baht and 33.30 baht.
In the international market, the exchange rate of dollar against Japanese yen mainly varied between 107.99 yen and 108.01 yen, while euro moved between 1.5518 dollar and 1.5520 dollar against the greenback.
As on June 16, 2008, the London Inter-Bank Offered Rates (LIBOR) against US dollar were 2.48180 per cent for one month, 2.81375 per cent for three months, 3.25500 per cent for six months, 3.49120 per cent for nine months and 3.68125 per cent for twelve months.