Call rate up, dollar gains strength
FE Report | Thursday, 31 July 2008
The inter-bank call money rate marked slight rise Wednesday due to increased demand for cash emanated from needs for month-end internal adjustments. The US dollar also gained ground against Bangladesh taka (BDT) for the second day in the inter-bank foreign exchange market on strong demand for the greenback, fund managers said.
The call rate moved between 7.00 per cent and 13.50 per cent against previous day's range of between 7.00 per cent and 12.75 per cent.
Most deals were, however, made at rates varying between 7.50 per cent and 10.00 per cent against previous day's range of 7.50 per cent and 9.50 per cent posing slightly higher pressure on liquidity.
Some banks and financial institutions had to borrow cash at high rates to meet urgent needs of their clients. It forced the call rate to rise above normal level in stray deals, fund managers said.
Banks and financial institutions are experiencing some intensified measures on the part of the central bank for improving discipline in using its tools related to liquidity support and squeeze, and this might put impact on inter-bank market behaviour, they added.
The dollar gained, as its lower edge rose and the exchange rate of the greenback stood at Tk 68.52 in the inter-bank market against previous trading day's range of between Tk 68.50 and Tk 68.52.
The dollar also appeared stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.43 and Tk 69.75 against previous trading day's range of between Tk 67.43 and Tk 69.63.
In the informal market, the dollar remained steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market witnessed sufficient supply of the greenback that maintained the balance between demand and supply and protected the taka losing its strength further, fund managers said.
The call rate moved between 7.00 per cent and 13.50 per cent against previous day's range of between 7.00 per cent and 12.75 per cent.
Most deals were, however, made at rates varying between 7.50 per cent and 10.00 per cent against previous day's range of 7.50 per cent and 9.50 per cent posing slightly higher pressure on liquidity.
Some banks and financial institutions had to borrow cash at high rates to meet urgent needs of their clients. It forced the call rate to rise above normal level in stray deals, fund managers said.
Banks and financial institutions are experiencing some intensified measures on the part of the central bank for improving discipline in using its tools related to liquidity support and squeeze, and this might put impact on inter-bank market behaviour, they added.
The dollar gained, as its lower edge rose and the exchange rate of the greenback stood at Tk 68.52 in the inter-bank market against previous trading day's range of between Tk 68.50 and Tk 68.52.
The dollar also appeared stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.43 and Tk 69.75 against previous trading day's range of between Tk 67.43 and Tk 69.63.
In the informal market, the dollar remained steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market witnessed sufficient supply of the greenback that maintained the balance between demand and supply and protected the taka losing its strength further, fund managers said.