Call rate steady, dollar in gaining mood
Thursday, 30 October 2008
FE Report
The inter-bank call money rate remained steady Wednesday with comfortable level of fund flow in the market. The US dollar, however, maintained its gaining mood against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly due to tight supply position, fund managers said.
The call rate moved mainly between 6.25 per cent and 11.50 per cent against previous day's range of between 6.00 per cent and 11.50 per cent.
Most deals were, however, made at rates varying between 7.00 per cent and 8.00 per cent against previous day's range of 6.50 per cent and 8.00 per cent reflecting marginal rise in pressure on liquidity.
The borrowing of cash by some banks and financial institutions from inter-bank market by some banks and financial institutions to meet urgent requirements of their clients raised the call rate above normal trend in stray deals, fund managers said.
The central bank withdrew Tk 16.05 billion Tuesday through reverse repo at an annual interest rate of 6.50 per cent. But the market did not experience much impact of the withdrawal.
The dollar gained ground against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.64 and Tk 68.65 against previous trading day's range of between Tk 68.60 and Tk 68.65. The market was active because of higher import payment obligations. The greenback also gained in public deals and the cash dollar was transacted at rates varying between Tk 67.77 and Tk 70.90 against previous trading day's range of between Tk 67.77 and Tk 70.80.
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 70.30 and Tk 70.50. 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 1.3839 and Tk 1.3867.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.66 and Rs 49.67 and the Pakistani rupee between Rs 82.30 and Rs 84.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5730 ringgit and 3.5780 ringgit and that against the Thai currency between 34.89 baht and 34.99 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 97.18 yen and 97.21 yen, while the euro moved between 1.2782 dollar and 1.2783 dollar against the greenback.
As on October 29, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.17120 per cent for one month, 3.46500 per cent for three months, 3.48000 per cent for six months, 3.49000 per cent for nine months and 3.49000 per cent for twelve months.
The inter-bank call money rate remained steady Wednesday with comfortable level of fund flow in the market. The US dollar, however, maintained its gaining mood against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly due to tight supply position, fund managers said.
The call rate moved mainly between 6.25 per cent and 11.50 per cent against previous day's range of between 6.00 per cent and 11.50 per cent.
Most deals were, however, made at rates varying between 7.00 per cent and 8.00 per cent against previous day's range of 6.50 per cent and 8.00 per cent reflecting marginal rise in pressure on liquidity.
The borrowing of cash by some banks and financial institutions from inter-bank market by some banks and financial institutions to meet urgent requirements of their clients raised the call rate above normal trend in stray deals, fund managers said.
The central bank withdrew Tk 16.05 billion Tuesday through reverse repo at an annual interest rate of 6.50 per cent. But the market did not experience much impact of the withdrawal.
The dollar gained ground against taka in the inter-bank market and the exchange rate of the greenback moved between Tk 68.64 and Tk 68.65 against previous trading day's range of between Tk 68.60 and Tk 68.65. The market was active because of higher import payment obligations. The greenback also gained in public deals and the cash dollar was transacted at rates varying between Tk 67.77 and Tk 70.90 against previous trading day's range of between Tk 67.77 and Tk 70.80.
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 70.30 and Tk 70.50. 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 1.3839 and Tk 1.3867.
In the regional market, most currencies weakened. The exchange rate of the dollar against the Indian rupee moved between Rs 49.66 and Rs 49.67 and the Pakistani rupee between Rs 82.30 and Rs 84.75. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5730 ringgit and 3.5780 ringgit and that against the Thai currency between 34.89 baht and 34.99 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 97.18 yen and 97.21 yen, while the euro moved between 1.2782 dollar and 1.2783 dollar against the greenback.
As on October 29, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.17120 per cent for one month, 3.46500 per cent for three months, 3.48000 per cent for six months, 3.49000 per cent for nine months and 3.49000 per cent for twelve months.