Demand for greenback lower
Sunday, 17 June 2007
Sarwar Zahan
The US dollar weakened against the Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback ranged between Tk 68.70 and Tk 69.00 against the previous week's range of between Tk 68.98 and Tk 69.06 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback decreased due to lower import payments. The inflow of inward remittance and receipt of export proceeds ensured steady supply of the foreign currency, they said.
The dollar, however, was stable in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 67.10 and Tk 69.90 maintaining the previous week's range, funds managers said.
The greenback remained steady with upward trend and was traded at rates between Tk 70.50 and Tk 71.00 in the local informal market against the previous week's range of between Tk 70.50 and Tk 70.90. The brokers, last week, bought the dollar mainly at rates between Tk 70.50 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were moderately active in making swap deals against customer requirements to fund their import payment obligations instantly. The use of swap deals was taken as a negative market behaviour, they added.
The total spot transactions in greenback during the week stood at around 77 million dollars against the previous week's about 91 million dollars in all sessions. The supply of the greenback was comfortably sufficient to meet the demand in the market, they added.
The central bank conducted continuous monitoring and supervision on activities of dealer banks to ensure discipline in the foreign exchange market. It was effective to check unnecessary transactions in dollar by the dealer banks, sources said.
The regular auctions of the reverse repurchase agreement (repo) by the central bank to withdraw cash from the market helped keep the call money rate at reasonable level and discourage excess buying of the dollar, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates for the foreign currencies to remit their money through the banking channel, fund managers said.
In the regional market, most of the currencies were steady against dollar. The exchange rate of the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71. The exchange rate of the dollar against the Indian rupee varied between Rs 40.70 and Rs 41.03. The Pakistani rupee ranged between Rs 60.59 and Rs 60.73.
The exchange rate of dollar against Malaysian ringgit varied between 3.4570 ringgit and 3.4680 ringgit and against Thai baht between 32.45 bahts and 34.66 bahts.
In the international market, dollar was traded between 121.68 yen and 122.70 yen against the previous week's range between 121.17 yen and 121.93 yen. The euro was traded between 1.3254 dollar and 1.3375 dollar against the previous week's range between 1.3468 dollar and 1.3532 dollar.
The US dollar weakened against the Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback ranged between Tk 68.70 and Tk 69.00 against the previous week's range of between Tk 68.98 and Tk 69.06 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback decreased due to lower import payments. The inflow of inward remittance and receipt of export proceeds ensured steady supply of the foreign currency, they said.
The dollar, however, was stable in public deals as well as in the local informal market. The cash dollar in public deals was exchanged at rates between Tk 67.10 and Tk 69.90 maintaining the previous week's range, funds managers said.
The greenback remained steady with upward trend and was traded at rates between Tk 70.50 and Tk 71.00 in the local informal market against the previous week's range of between Tk 70.50 and Tk 70.90. The brokers, last week, bought the dollar mainly at rates between Tk 70.50 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The dealer banks were moderately active in making swap deals against customer requirements to fund their import payment obligations instantly. The use of swap deals was taken as a negative market behaviour, they added.
The total spot transactions in greenback during the week stood at around 77 million dollars against the previous week's about 91 million dollars in all sessions. The supply of the greenback was comfortably sufficient to meet the demand in the market, they added.
The central bank conducted continuous monitoring and supervision on activities of dealer banks to ensure discipline in the foreign exchange market. It was effective to check unnecessary transactions in dollar by the dealer banks, sources said.
The regular auctions of the reverse repurchase agreement (repo) by the central bank to withdraw cash from the market helped keep the call money rate at reasonable level and discourage excess buying of the dollar, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates for the foreign currencies to remit their money through the banking channel, fund managers said.
In the regional market, most of the currencies were steady against dollar. The exchange rate of the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71. The exchange rate of the dollar against the Indian rupee varied between Rs 40.70 and Rs 41.03. The Pakistani rupee ranged between Rs 60.59 and Rs 60.73.
The exchange rate of dollar against Malaysian ringgit varied between 3.4570 ringgit and 3.4680 ringgit and against Thai baht between 32.45 bahts and 34.66 bahts.
In the international market, dollar was traded between 121.68 yen and 122.70 yen against the previous week's range between 121.17 yen and 121.93 yen. The euro was traded between 1.3254 dollar and 1.3375 dollar against the previous week's range between 1.3468 dollar and 1.3532 dollar.