Call rate steady, dollar eases
Wednesday, 13 June 2007
FE Report
The inter-bank call money rate remained steady Tuesday despite higher demand for and withdrawal of cash through reverse repurchase agreement (repo) and bonds, fund managers said.
The rate fluctuated between 8.00 per cent and 12.50 per cent maintaining the previous day's range.
The rates, however, moved between 8.50 per cent and 9.00 per cent in most deals against the previous day's range of between 8.00 per cent and 9.00 per cent, they said.
The call rate remained above the bank rate of 5.00 per cent in all deals indicating higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 130 million against reverse repo on the day at an annual interest rate of 6.50 per cent.
Besides, it drained out Tk 200 million from the market holding auction of Bangladesh Bank Bill at an interest rate of 7.60 per cent per annum.
Some non-banking financial institutions borrowed cash from the interbank market at high rates that influenced the rate to move above the normal trend, fund managers said.
The US dollar fell further against the Bangladesh taka (BDT) on the day in the interbank foreign exchange market with a stable demand for the greenback, fund managers said.
The greenback continued to fluctuate below Tk 69.00 level throughout the day.
The exchange rate of the dollar against the BDT ranged between Tk 68.80 and Tk 68.90 against the previous day's range of between Tk 68.90 and Tk 68.95 in the inter-bank foreign exchange market.
The dollar was, however, unchanged in public deals. The cash dollar in public deals was transacted at rates varying between Tk 67.05 and Tk 69.90 bending to previous day's range.
In the informal market, the dollar, however, gained and it was traded at rates varying between Tk 70.80 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.70 and Tk 71.00. The demand for the greenback was higher in the informal market, money dealers said.
The exchange rate of the Indian rupee against the taka varied between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rates of the dollar against the Indian rupee fluctuated between Rs 40.76 and Rs 40.78 and the Pakistani rupee between Rs 60.63 and Rs 60.73.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4590 ringgit and 3.4630 ringgit, and that against the Thai currency between 34.59 baht and 34.62 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 121.79 yen and 121.81 yen, while the euro moved between 1.3341 dollar and 1.3342 dollar against the greenback.
As on June 12, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.32000 per cent for one month, 5.36000 per cent for three months, 5.39781 per cent for six months and 5.46600 per cent for twelve months.
The inter-bank call money rate remained steady Tuesday despite higher demand for and withdrawal of cash through reverse repurchase agreement (repo) and bonds, fund managers said.
The rate fluctuated between 8.00 per cent and 12.50 per cent maintaining the previous day's range.
The rates, however, moved between 8.50 per cent and 9.00 per cent in most deals against the previous day's range of between 8.00 per cent and 9.00 per cent, they said.
The call rate remained above the bank rate of 5.00 per cent in all deals indicating higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 130 million against reverse repo on the day at an annual interest rate of 6.50 per cent.
Besides, it drained out Tk 200 million from the market holding auction of Bangladesh Bank Bill at an interest rate of 7.60 per cent per annum.
Some non-banking financial institutions borrowed cash from the interbank market at high rates that influenced the rate to move above the normal trend, fund managers said.
The US dollar fell further against the Bangladesh taka (BDT) on the day in the interbank foreign exchange market with a stable demand for the greenback, fund managers said.
The greenback continued to fluctuate below Tk 69.00 level throughout the day.
The exchange rate of the dollar against the BDT ranged between Tk 68.80 and Tk 68.90 against the previous day's range of between Tk 68.90 and Tk 68.95 in the inter-bank foreign exchange market.
The dollar was, however, unchanged in public deals. The cash dollar in public deals was transacted at rates varying between Tk 67.05 and Tk 69.90 bending to previous day's range.
In the informal market, the dollar, however, gained and it was traded at rates varying between Tk 70.80 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.70 and Tk 71.00. The demand for the greenback was higher in the informal market, money dealers said.
The exchange rate of the Indian rupee against the taka varied between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rates of the dollar against the Indian rupee fluctuated between Rs 40.76 and Rs 40.78 and the Pakistani rupee between Rs 60.63 and Rs 60.73.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4590 ringgit and 3.4630 ringgit, and that against the Thai currency between 34.59 baht and 34.62 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 121.79 yen and 121.81 yen, while the euro moved between 1.3341 dollar and 1.3342 dollar against the greenback.
As on June 12, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.32000 per cent for one month, 5.36000 per cent for three months, 5.39781 per cent for six months and 5.46600 per cent for twelve months.