Dollar holds steady against Taka
Sarwar Zahan | Monday, 18 August 2008
The US dollar was mostly stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week despite a modest demand for the greenback, fund managers said.
The supply of the greenbank was sufficient because of the steady inflow of remittance. The importers were also less active to open fresh letters of credit, they said.
The steady inward flow of remittance and inflow of export proceeds ensured sufficient supply of the dollar in the market. It helped maintain a balance between demand and supply that influenced the greenback to show a downward bias, they observed.
The inter-bank exchange rate of dollar moved between Tk 68.50 and Tk 68.52 against the previous week's range between Tk 68.51 and Tk 68.52.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They, however, were active to make swap deals. The use of swap deals is usually considered as a discouraging market behaviour, they added.
Dollar, however, gained in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 70.20 against the previous week's range between Tk 67.42 and Tk 69.63, fund managers said.
In the informal market, the greenback remained mostly steady and it was traded at rates varying between Tk 69.70 and Tk 70.10 in the local informal market maintaining the previous week's range. The brokers used to buy dollar mainly at rates between Tk 69.70 and Tk 69.80 and sold it at rates between Tk 70.00 and Tk 70.10, money dealers said.
The spot transactions in greenback stood at around $ 50 million in the week against the previous week's around $ 53.85 million reflecting a lower demand for the greenback, they said.
The central bank conducted strong monitoring and supervision on activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market. Besides, it provided liquidity supports to selected banks to maintain the demand-supply balance, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for transferring their money through the banking channel, money dealers said.
In the regional market, most of the currencies appeared steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 41.97 and Rs 43.16 against the previous week's range between Rs 42.08 and Rs 42.50 and against the Pakistani rupee between Rs 72.37 and Rs 75.30 the against previous week's range between Rs 71.65 and Rs 72.85.
Besides, the exchange rate of dollar against the Malaysian ringgit varied between 3.3150 ringgit and 3.3350 ringgit, and against the Thai currency between 33.64 baht and 33.77 baht.
In the international market, the dollar was traded between 108.26 yen and 110.18 yen against the previous week's range between 107.62 yen and 109.34 yen. Euro was traded between 1.4891 dollar and 1.5008 dollar against the previous week's range between 1.5400 dollar and 1.5581 dollar.
The supply of the greenbank was sufficient because of the steady inflow of remittance. The importers were also less active to open fresh letters of credit, they said.
The steady inward flow of remittance and inflow of export proceeds ensured sufficient supply of the dollar in the market. It helped maintain a balance between demand and supply that influenced the greenback to show a downward bias, they observed.
The inter-bank exchange rate of dollar moved between Tk 68.50 and Tk 68.52 against the previous week's range between Tk 68.51 and Tk 68.52.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They, however, were active to make swap deals. The use of swap deals is usually considered as a discouraging market behaviour, they added.
Dollar, however, gained in public deals and it was mostly exchanged at rates varying between Tk 67.42 and Tk 70.20 against the previous week's range between Tk 67.42 and Tk 69.63, fund managers said.
In the informal market, the greenback remained mostly steady and it was traded at rates varying between Tk 69.70 and Tk 70.10 in the local informal market maintaining the previous week's range. The brokers used to buy dollar mainly at rates between Tk 69.70 and Tk 69.80 and sold it at rates between Tk 70.00 and Tk 70.10, money dealers said.
The spot transactions in greenback stood at around $ 50 million in the week against the previous week's around $ 53.85 million reflecting a lower demand for the greenback, they said.
The central bank conducted strong monitoring and supervision on activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market. Besides, it provided liquidity supports to selected banks to maintain the demand-supply balance, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for transferring their money through the banking channel, money dealers said.
In the regional market, most of the currencies appeared steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 41.97 and Rs 43.16 against the previous week's range between Rs 42.08 and Rs 42.50 and against the Pakistani rupee between Rs 72.37 and Rs 75.30 the against previous week's range between Rs 71.65 and Rs 72.85.
Besides, the exchange rate of dollar against the Malaysian ringgit varied between 3.3150 ringgit and 3.3350 ringgit, and against the Thai currency between 33.64 baht and 33.77 baht.
In the international market, the dollar was traded between 108.26 yen and 110.18 yen against the previous week's range between 107.62 yen and 109.34 yen. Euro was traded between 1.4891 dollar and 1.5008 dollar against the previous week's range between 1.5400 dollar and 1.5581 dollar.