Greenback closes weak against BDT
Sunday, 4 November 2007
Sarwar Zahan
US dollar closed weak against Bangladesh taka (BDT) last week influenced by injection of dollar into the market by the central bank. The demand for greenback, however, was still high, fund managers said.
The exchange rate of greenback moved between Tk 68.65 and Tk 68.67 against the previous week's range between Tk 68.69 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The central bank injected about $ 25 billion into the banking system to indirectly help taka to be appreciated, they said.
The demand for dollar was high due to increased import payments. The steady inflow of remittance and export proceeds helped taka recover its strength slightly in the interbank market, they said.
Greenback also lost ground in public deals. Cash dollar in public deals was exchanged at rates between Tk 67.42 and Tk 70.10 against the previous week's range between Tk 67.60 and Tk 69.90, funds managers said.
In the informal market, greenback was slightly soft and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market against the previous week's range between Tk 70.20 and Tk 70.60. The brokers used to buy dollar mainly at rates between Tk 70.10 and Tk 70.20 and sold it between Tk 70.30 and Tk 70.40, money dealers said.
The spot transactions in greenback was high and the total transaction in three sessions was recorded at around at $ 87 million against the previous week's $ 48 million. The balance between the demand and the supply was reasonably maintained with steady supply of dollar, they added.
The dealer banks were cautious in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as an encouraging market behaviour, they added.
The central bank was highly alert to conduct regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government treasury (BGT) bonds to keep pressure on liquidity and discourage buying of dollar by keeping the call money rate at a higher-than-expected level, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies were 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 moved between Rs 39.30 and Rs 39.44 and against Pakistani rupee between Rs 60.63 and Rs 60.86.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3300 ringgit and 3.3480 ringgit, and that against Thai currency between 31.71 baht and 34.11 baht.
In the international market, dollar was traded between 114.22 yen and 115.39 yen against the previous week's range between 114.03 yen and 114.83 yen. Euro was traded between 1.4394 dollar and 1.4461 dollar against previous week's range between 1.4171 dollar and 1.4262 dollar.
US dollar closed weak against Bangladesh taka (BDT) last week influenced by injection of dollar into the market by the central bank. The demand for greenback, however, was still high, fund managers said.
The exchange rate of greenback moved between Tk 68.65 and Tk 68.67 against the previous week's range between Tk 68.69 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The central bank injected about $ 25 billion into the banking system to indirectly help taka to be appreciated, they said.
The demand for dollar was high due to increased import payments. The steady inflow of remittance and export proceeds helped taka recover its strength slightly in the interbank market, they said.
Greenback also lost ground in public deals. Cash dollar in public deals was exchanged at rates between Tk 67.42 and Tk 70.10 against the previous week's range between Tk 67.60 and Tk 69.90, funds managers said.
In the informal market, greenback was slightly soft and it was traded at rates ranging between Tk 70.10 and Tk 70.40 in the local informal market against the previous week's range between Tk 70.20 and Tk 70.60. The brokers used to buy dollar mainly at rates between Tk 70.10 and Tk 70.20 and sold it between Tk 70.30 and Tk 70.40, money dealers said.
The spot transactions in greenback was high and the total transaction in three sessions was recorded at around at $ 87 million against the previous week's $ 48 million. The balance between the demand and the supply was reasonably maintained with steady supply of dollar, they added.
The dealer banks were cautious in making swap deals against customer requirements to fund their import payment obligations instantly. The lower use of swap deals was taken as an encouraging market behaviour, they added.
The central bank was highly alert to conduct regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government treasury (BGT) bonds to keep pressure on liquidity and discourage buying of dollar by keeping the call money rate at a higher-than-expected level, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to send their money through the banking channel, fund managers said.
In the regional market, most of the currencies were 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 moved between Rs 39.30 and Rs 39.44 and against Pakistani rupee between Rs 60.63 and Rs 60.86.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3300 ringgit and 3.3480 ringgit, and that against Thai currency between 31.71 baht and 34.11 baht.
In the international market, dollar was traded between 114.22 yen and 115.39 yen against the previous week's range between 114.03 yen and 114.83 yen. Euro was traded between 1.4394 dollar and 1.4461 dollar against previous week's range between 1.4171 dollar and 1.4262 dollar.