Greenback closes low against BDT
Sarwar Zahan | Sunday, 1 June 2008
US dollar was closed low against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to lower demand for the greenback, fund managers said.
The lower inward remittance and inflow of export proceeds also forced dollar to surrender its earlier gains to taka, they said.
The demand for the greenback showed a slightly downward trend due to fall in import payment obligations, they added.
The inter-bank exchange rate of dollar moved between Tk 68.53 and Tk 68.57 against the previous day's range between Tk 68.57 and Tk 68.58, they added.
The central bank was active to use its tools for maintaining stability in the market as well as indirectly support taka to recover its strength. Most banks appeared moderately active in the inter-bank market easing some pressure on demand for dollar. The inter-bank call money rate was also moving at a lower level, but it insignificantly influenced the stakeholders to become active up to the expected level in the market, fund managers said.
The commercial banks as usual avoided cross-currency transactions complying with the instruction of the central bank. They were, however, active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they said.
Dollar, however, mostly maintained steady face with an upward bias in public deals and cash dollar in public deals was exchanged at rates between Tk 67.25 and Tk 69.90 against the previous week's range between Tk 67.25 and Tk 69.85, funds managers said.
In the informal market, the greenback was also steady and it was traded at rates varying between Tk 69.50 and Tk 70.00 in the local informal market against the previous week's range between Tk 69.60 and Tk 70.00. The brokers used to buy dollar mainly at rates between Tk 69.50 and Tk 69.80 and sold it between Tk 69.80 and Tk 70.00, money dealers said.
The spot transactions in greenback stood at around at $ 34.70 million in the full week against the previous week's $ 34.40 million in four sessions indicating on average a falling demand for the greenback, they said.
The central bank actively intervened in the market to ensure price stability and monitored and supervised the activities of the dealer banks intensively to check unnecessary transactions in dollar for maintaining discipline in the foreign exchange market, sources said.
The commercial banks offered high exchange rates of dollar to Bangladeshi expatriates for encouraging them to transfer their money through the banking channel, they said.
In the regional market, most of the currencies appeared weaker 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 42.57 and Rs 42.84 against the previous week's range between Rs 42.45 and Rs 42.65 and Pakistani rupee between Rs 67.25 and Rs 69.75 against the previous week's Rs 69.26 and Rs 69.75.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2185 ringgit and 3.2500 ringgit, and that against the Thai currency between 32.17 baht and 32.50 baht.
In the international market, dollar was traded between 103.97 yen and 105.20 yen against the previous week's range between 103.54 yen and 103.74 yen. Euro was traded between 1.5540 dollar and 1.5758 dollar against the previous week's range between 1.5642 dollar and 1.5743 dollar.
The lower inward remittance and inflow of export proceeds also forced dollar to surrender its earlier gains to taka, they said.
The demand for the greenback showed a slightly downward trend due to fall in import payment obligations, they added.
The inter-bank exchange rate of dollar moved between Tk 68.53 and Tk 68.57 against the previous day's range between Tk 68.57 and Tk 68.58, they added.
The central bank was active to use its tools for maintaining stability in the market as well as indirectly support taka to recover its strength. Most banks appeared moderately active in the inter-bank market easing some pressure on demand for dollar. The inter-bank call money rate was also moving at a lower level, but it insignificantly influenced the stakeholders to become active up to the expected level in the market, fund managers said.
The commercial banks as usual avoided cross-currency transactions complying with the instruction of the central bank. They were, however, active in making swap deals. The use of swap deals is usually considered a discouraging market behaviour, they said.
Dollar, however, mostly maintained steady face with an upward bias in public deals and cash dollar in public deals was exchanged at rates between Tk 67.25 and Tk 69.90 against the previous week's range between Tk 67.25 and Tk 69.85, funds managers said.
In the informal market, the greenback was also steady and it was traded at rates varying between Tk 69.50 and Tk 70.00 in the local informal market against the previous week's range between Tk 69.60 and Tk 70.00. The brokers used to buy dollar mainly at rates between Tk 69.50 and Tk 69.80 and sold it between Tk 69.80 and Tk 70.00, money dealers said.
The spot transactions in greenback stood at around at $ 34.70 million in the full week against the previous week's $ 34.40 million in four sessions indicating on average a falling demand for the greenback, they said.
The central bank actively intervened in the market to ensure price stability and monitored and supervised the activities of the dealer banks intensively to check unnecessary transactions in dollar for maintaining discipline in the foreign exchange market, sources said.
The commercial banks offered high exchange rates of dollar to Bangladeshi expatriates for encouraging them to transfer their money through the banking channel, they said.
In the regional market, most of the currencies appeared weaker 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 42.57 and Rs 42.84 against the previous week's range between Rs 42.45 and Rs 42.65 and Pakistani rupee between Rs 67.25 and Rs 69.75 against the previous week's Rs 69.26 and Rs 69.75.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2185 ringgit and 3.2500 ringgit, and that against the Thai currency between 32.17 baht and 32.50 baht.
In the international market, dollar was traded between 103.97 yen and 105.20 yen against the previous week's range between 103.54 yen and 103.74 yen. Euro was traded between 1.5540 dollar and 1.5758 dollar against the previous week's range between 1.5642 dollar and 1.5743 dollar.