Greenback appears weak against BDT
Sunday, 15 July 2007
Sarwar Zahan
US dollar appeared weak against Bangladesh taka (BDT) last week because of lower demand for the greenback. The exchange rate of the greenback fluctuated between Tk 68.62 and Tk 68.67 against the previous week's range between Tk 68.70 and Tk 68.85 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback fell due to lower import payments. Increased inward remittance and export proceeds kept the supply of the foreign currency comfortably steady. It forced the greenback to surrender its earlier gains to taka, they said.
Dollar also lost ground in public deals, but it gained ground in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.80 and Tk 69.90 against the previous week's range between Tk 67.05 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.50 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 68 million dollars against the previous week's about 80 million dollars. The supply of the greenback was adequate to easily meet the demand in the market, they added.
The dealer banks remained cautious to make swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as a positive market behaviour, they added.
The central bank intensified its monitoring and supervision activities to ensure discipline in the foreign exchange market. The measures were used to check unnecessary transactions in dollar by the dealer banks, sources said.
The central bank utilised its monetary tools regularly to withdraw cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills, Bangladesh Government treasury bills from the market. The aim was to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for the foreign currencies to encourage the Bangladeshi expatriates to send their money through the banking channel, fund managers 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 1.71. The exchange rate of dollar against Indian rupee varied between Rs 40.17 and Rs 40.43. Pakistani rupee ranged between Rs 60.37 and Rs 60.57.
The exchange rate of dollar against Malaysian ringgit varied between 3.4325 ringgit and 3.4525 ringgit and against Thai baht between 30.65 bahts and 33.92 bahts.
In the international market, dollar was traded between 121.87 yen and 123.52 against the previous week's range between 122.36 yen and 123.69 yen. Euro was traded between 1.3624 dollar and 1.3768 dollar against the previous week's range between 1.3596 dollar and 1.3644 dollar.
US dollar appeared weak against Bangladesh taka (BDT) last week because of lower demand for the greenback. The exchange rate of the greenback fluctuated between Tk 68.62 and Tk 68.67 against the previous week's range between Tk 68.70 and Tk 68.85 in the interbank foreign exchange market, fund manager sources said.
The demand for the greenback fell due to lower import payments. Increased inward remittance and export proceeds kept the supply of the foreign currency comfortably steady. It forced the greenback to surrender its earlier gains to taka, they said.
Dollar also lost ground in public deals, but it gained ground in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.80 and Tk 69.90 against the previous week's range between Tk 67.05 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.50 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 68 million dollars against the previous week's about 80 million dollars. The supply of the greenback was adequate to easily meet the demand in the market, they added.
The dealer banks remained cautious to make swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as a positive market behaviour, they added.
The central bank intensified its monitoring and supervision activities to ensure discipline in the foreign exchange market. The measures were used to check unnecessary transactions in dollar by the dealer banks, sources said.
The central bank utilised its monetary tools regularly to withdraw cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills, Bangladesh Government treasury bills from the market. The aim was to keep the call money rate at a reasonable level and discourage excess buying of dollar, they said.
The commercial banks offered high exchange rates for the foreign currencies to encourage the Bangladeshi expatriates to send their money through the banking channel, fund managers 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 1.71. The exchange rate of dollar against Indian rupee varied between Rs 40.17 and Rs 40.43. Pakistani rupee ranged between Rs 60.37 and Rs 60.57.
The exchange rate of dollar against Malaysian ringgit varied between 3.4325 ringgit and 3.4525 ringgit and against Thai baht between 30.65 bahts and 33.92 bahts.
In the international market, dollar was traded between 121.87 yen and 123.52 against the previous week's range between 122.36 yen and 123.69 yen. Euro was traded between 1.3624 dollar and 1.3768 dollar against the previous week's range between 1.3596 dollar and 1.3644 dollar.