Call rate slides, dollar remains steady
FE Report | Monday, 30 June 2008
The inter-bank call money rate slid Sunday despite withdrawal of cash from the market through treasury bills. The US dollar, however, maintained steady nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for the greenback, fund managers said.
The call rate in extreme range fluctuated between 3.75 per cent and 11.00 per cent against previous day's range of between 6.00 per cent and 11.00 per cent.
Most deals were, however, transacted at rates between 5.50 per cent and 6.50 per cent against previous day's range of between 6.50 per cent and 7.50 per cent evidently reflecting decline in pressure on liquidity.
The call rate moved above the main level in limited deals with some banks and financial institutions borrowing cash at high rates to meet urgent needs of their clients, sources said.
The government borrowed Tk 9.00 billion through treasury bills on the day without creating any pressure on liquidity.
The central bank, however, refrained from accepting reverse repurchase bids amounting to Tk 12.53 billion allowing the call rate to move downward, fund managers said.
The dollar was, on the other hand, stable against taka in inter-bank foreign exchange market that experienced steady demand because of weekend in the international market, they said.
The exchange rate of the dollar fluctuated between Tk 68.50 and Tk 68.53 following 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 69.80 repeating previous trading day's range.
In the informal market, the dollar remained steady and it was traded at rates varying between Tk 69.60 and Tk 69.90 against previous day's range of between 69.50 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 42.84 and Rs 42.85 and the Pakistani rupee between Rs 67.95 and Rs 68.20. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2640 ringgit and 3.2655 ringgit and that against the Thai currency between 33.52 baht and 33.57 baht.
The call rate in extreme range fluctuated between 3.75 per cent and 11.00 per cent against previous day's range of between 6.00 per cent and 11.00 per cent.
Most deals were, however, transacted at rates between 5.50 per cent and 6.50 per cent against previous day's range of between 6.50 per cent and 7.50 per cent evidently reflecting decline in pressure on liquidity.
The call rate moved above the main level in limited deals with some banks and financial institutions borrowing cash at high rates to meet urgent needs of their clients, sources said.
The government borrowed Tk 9.00 billion through treasury bills on the day without creating any pressure on liquidity.
The central bank, however, refrained from accepting reverse repurchase bids amounting to Tk 12.53 billion allowing the call rate to move downward, fund managers said.
The dollar was, on the other hand, stable against taka in inter-bank foreign exchange market that experienced steady demand because of weekend in the international market, they said.
The exchange rate of the dollar fluctuated between Tk 68.50 and Tk 68.53 following 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 69.80 repeating previous trading day's range.
In the informal market, the dollar remained steady and it was traded at rates varying between Tk 69.60 and Tk 69.90 against previous day's range of between 69.50 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 42.84 and Rs 42.85 and the Pakistani rupee between Rs 67.95 and Rs 68.20. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2640 ringgit and 3.2655 ringgit and that against the Thai currency between 33.52 baht and 33.57 baht.