Dollar stronger, call rate stable
Tuesday, 4 December 2007
FE Report
The US dollar ended stronger against the Bangladesh taka (BDT) Monday in the inter-bank foreign exchange market with higher demand for the greenback, as trading started Monday as usual in the international market, fund managers said.
The inter-bank call rate, on the other hand, was mostly stable although the central bank resorted to withdrawing cash through reverse repurchase agreement (repo).
The exchange rate of the dollar stood at Tk 68.61 against the previous day's range of between Tk 68.60 and Tk 68.61 in the inter-bank foreign exchange market.
The greenback, however, appeared soft in public deals as well as in informal transactions. The cash dollar was transacted at rates varying between Tk 67.60 and Tk 69.95 against previous day's range of between Tk 67.60 and Tk 70.55.
In the informal market, the dollar dropped further and it was traded at rates varying between Tk 68.20 and Tk 68.60 against the previous day's range of between Tk 68.80 and Tk 69.10. The informal market experienced lower demand for the dollar 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, the exchange rate of the dollar against the Indian rupee moved between Rs 39.61 and Rs 39.62 and the Pakistani rupee between Rs 61.27 and Rs 61.29. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3570 ringgit and 3.3600 ringgit, and that against the Thai currency between 33.84 baht and 33.86 baht.
The inter-bank call money rate was stable despite higher demand for cash and the withdrawal of cash from the market using reverse repo tool, fund managers said.
The call rate in its extreme range moved between 6.50 per cent and 10.50 per cent maintaining the previous day's range. In most deals, the rates, however, moved between 6.60 per cent and 6.75 per cent against previous day's range of between 6.50 per cent and 7.00 per cent in the inter-bank market, they said.
Some non-banking financial institutions had to borrow cash from the inter-bank market at high rates in stray deals to meet urgent demands of their clients. It influenced the call rate to rise above normal level, fund managers said.
The call rate stayed above the bank rate of 5.00 per cent in all deals that indicated higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 9.77 billion on the day through reverse repo auctions at an interest rate of 6.50 per cent per annum.
The US dollar ended stronger against the Bangladesh taka (BDT) Monday in the inter-bank foreign exchange market with higher demand for the greenback, as trading started Monday as usual in the international market, fund managers said.
The inter-bank call rate, on the other hand, was mostly stable although the central bank resorted to withdrawing cash through reverse repurchase agreement (repo).
The exchange rate of the dollar stood at Tk 68.61 against the previous day's range of between Tk 68.60 and Tk 68.61 in the inter-bank foreign exchange market.
The greenback, however, appeared soft in public deals as well as in informal transactions. The cash dollar was transacted at rates varying between Tk 67.60 and Tk 69.95 against previous day's range of between Tk 67.60 and Tk 70.55.
In the informal market, the dollar dropped further and it was traded at rates varying between Tk 68.20 and Tk 68.60 against the previous day's range of between Tk 68.80 and Tk 69.10. The informal market experienced lower demand for the dollar 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, the exchange rate of the dollar against the Indian rupee moved between Rs 39.61 and Rs 39.62 and the Pakistani rupee between Rs 61.27 and Rs 61.29. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3570 ringgit and 3.3600 ringgit, and that against the Thai currency between 33.84 baht and 33.86 baht.
The inter-bank call money rate was stable despite higher demand for cash and the withdrawal of cash from the market using reverse repo tool, fund managers said.
The call rate in its extreme range moved between 6.50 per cent and 10.50 per cent maintaining the previous day's range. In most deals, the rates, however, moved between 6.60 per cent and 6.75 per cent against previous day's range of between 6.50 per cent and 7.00 per cent in the inter-bank market, they said.
Some non-banking financial institutions had to borrow cash from the inter-bank market at high rates in stray deals to meet urgent demands of their clients. It influenced the call rate to rise above normal level, fund managers said.
The call rate stayed above the bank rate of 5.00 per cent in all deals that indicated higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 9.77 billion on the day through reverse repo auctions at an interest rate of 6.50 per cent per annum.