Dollar regains strength, call rate steady
Friday, 10 August 2007
FE Report
The US dollar regained its strength against the Bangladesh taka (BDT) Thursday in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The exchange rate of the dollar against the BDT moved between the range of Tk 68.53 and Tk 68.60 against previous day's range of between Tk 68.50 and Tk 68.54 in the inter-bank foreign exchange market.
The dollar, however, was steady in public deals and the cash dollar was transacted at rates varying between Tk 67.00 and Tk 69.90 maintaining the previous day's range.
In the informal market, the dollar also remained steady and it was traded at rates swinging between Tk 70.70 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.80 and Tk 71.00. The informal market experienced higher demand for the greenback, money dealers said.
The exchange rate of the Indian rupee against the taka varied between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 40.41 and Rs 40.42 and the Pakistani rupee between Rs 60.42 and Rs 60.43.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4520 ringgit and 3.4550 ringgit, and that against the Thai currency between 33.98 baht and 34.00 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 118.51 yen and 118.54 yen, while the euro moved between 1.3692 dollar and 1.3694 dollar against the greenback.
As on August 09, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.35000 per cent for one month, 5.38000 per cent for three months, 5.33880 per cent for six months, 5.21500 per cent for nine-months and 5.18750 per cent for twelve months.
The inter-bank call money rate remained steady on the day in an active market despite withdrawal of cash through reverse repurchase agreement (repo).
The call rate in its extreme range moved between 6.50 per cent and 10.00 per cent repeating the previous day's range.
In most deals, the rates, however, moved between 6.50 per cent and 6.70 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
Some non-banking financial institutions borrowed cash at high rates from the inter-bank market to meet immediate demands of their clients influencing the call rate to rise above the normal trend, fund managers said.
The call rate fluctuated above the bank rate of 5.00 per cent in all deals reflecting higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 8.76 billion through reverse repo auction at an interest rate of 6.50 per cent per annum. It created negligible pressure on liquidity because of adequate flow of cash in the market.
The US dollar regained its strength against the Bangladesh taka (BDT) Thursday in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The exchange rate of the dollar against the BDT moved between the range of Tk 68.53 and Tk 68.60 against previous day's range of between Tk 68.50 and Tk 68.54 in the inter-bank foreign exchange market.
The dollar, however, was steady in public deals and the cash dollar was transacted at rates varying between Tk 67.00 and Tk 69.90 maintaining the previous day's range.
In the informal market, the dollar also remained steady and it was traded at rates swinging between Tk 70.70 and Tk 71.00 in the informal market against the previous day's range of between Tk 70.80 and Tk 71.00. The informal market experienced higher demand for the greenback, money dealers said.
The exchange rate of the Indian rupee against the taka varied between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 40.41 and Rs 40.42 and the Pakistani rupee between Rs 60.42 and Rs 60.43.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4520 ringgit and 3.4550 ringgit, and that against the Thai currency between 33.98 baht and 34.00 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 118.51 yen and 118.54 yen, while the euro moved between 1.3692 dollar and 1.3694 dollar against the greenback.
As on August 09, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 5.35000 per cent for one month, 5.38000 per cent for three months, 5.33880 per cent for six months, 5.21500 per cent for nine-months and 5.18750 per cent for twelve months.
The inter-bank call money rate remained steady on the day in an active market despite withdrawal of cash through reverse repurchase agreement (repo).
The call rate in its extreme range moved between 6.50 per cent and 10.00 per cent repeating the previous day's range.
In most deals, the rates, however, moved between 6.50 per cent and 6.70 per cent against the previous day's range of between 6.50 per cent and 6.60 per cent, they said.
Some non-banking financial institutions borrowed cash at high rates from the inter-bank market to meet immediate demands of their clients influencing the call rate to rise above the normal trend, fund managers said.
The call rate fluctuated above the bank rate of 5.00 per cent in all deals reflecting higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 8.76 billion through reverse repo auction at an interest rate of 6.50 per cent per annum. It created negligible pressure on liquidity because of adequate flow of cash in the market.