Call rate up, dollar down
FE Report | Monday, 2 June 2008
The inter-bank call money rate posted rise Sunday due to withdrawal of cash through treasury bills. The US dollar, on the other hand, fell against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of lower demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 18.00 per cent against previous day's range of between 6.00 per cent and 12.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 14.00 per cent against previous day's range of between 9.00 per cent and 10.00 per cent reflecting increased pressure on liquidity.
Some banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent demands of their clients that resulted in rise of the call rate above normal level in stray deals, sources said.
The government borrowed Tk 9.00 billion through auctions of treasury bills putting some pressure on liquidity.
The central bank also withdrew Tk 1.00 billion conducting reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent.
On the contrary, the central bank injected Tk 14.02 billion of fresh cash, including Tk 9.41 billion as liquidity support to primary dealers, into the market through repo auctions at an interest rate of 8.50 per cent per annum for improving liquidity position. It, however, left little impact on liquidity on the day, fund managers said.
The dollar closed lower against taka in the inter-bank foreign exchange market on moderate import payment obligations, fund managers said.
The market was moderately active due to weekend in the international market.
The exchange rate of the dollar moved between Tk 68.52 and Tk 68.54 against previous trading day's range of between Tk 68.53 and Tk 68.55 in the inter-bank market.
The dollar was, however, steady in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar dropped and it was traded at rates varying between Tk 69.30 and Tk 69.70 against previous day's range of between Tk 69.60 and Tk 70.00. 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 42.15 and Rs 42.17 and the Pakistani rupee between Rs 66.30 and Rs 66.45. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2385 ringgit and 3.2415 ringgit and that against the Thai currency between 32.48 baht and 32.50 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 105.52 yen and 105.55 yen, while the euro moved between 1.5551 dollar and 1.5554 dollar against the greenback.
As on June 01, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45750 per cent for one month, 2.68063 per cent for three months, 2.91063 per cent for six months, 2.95870 per cent for nine months and 3.16375 per cent for twelve months.
The call rate in extreme range moved between 8.00 per cent and 18.00 per cent against previous day's range of between 6.00 per cent and 12.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 14.00 per cent against previous day's range of between 9.00 per cent and 10.00 per cent reflecting increased pressure on liquidity.
Some banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent demands of their clients that resulted in rise of the call rate above normal level in stray deals, sources said.
The government borrowed Tk 9.00 billion through auctions of treasury bills putting some pressure on liquidity.
The central bank also withdrew Tk 1.00 billion conducting reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent.
On the contrary, the central bank injected Tk 14.02 billion of fresh cash, including Tk 9.41 billion as liquidity support to primary dealers, into the market through repo auctions at an interest rate of 8.50 per cent per annum for improving liquidity position. It, however, left little impact on liquidity on the day, fund managers said.
The dollar closed lower against taka in the inter-bank foreign exchange market on moderate import payment obligations, fund managers said.
The market was moderately active due to weekend in the international market.
The exchange rate of the dollar moved between Tk 68.52 and Tk 68.54 against previous trading day's range of between Tk 68.53 and Tk 68.55 in the inter-bank market.
The dollar was, however, steady in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar dropped and it was traded at rates varying between Tk 69.30 and Tk 69.70 against previous day's range of between Tk 69.60 and Tk 70.00. 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 42.15 and Rs 42.17 and the Pakistani rupee between Rs 66.30 and Rs 66.45. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2385 ringgit and 3.2415 ringgit and that against the Thai currency between 32.48 baht and 32.50 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 105.52 yen and 105.55 yen, while the euro moved between 1.5551 dollar and 1.5554 dollar against the greenback.
As on June 01, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45750 per cent for one month, 2.68063 per cent for three months, 2.91063 per cent for six months, 2.95870 per cent for nine months and 3.16375 per cent for twelve months.