Greenback gains ground against BDT
Sunday, 2 September 2007
Sarwar Zahan
US dollar gained ground against Bangladesh taka (BDT) last week in spite of a stable demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.60 and Tk 68.70 against the previous week's range between Tk 68.54 and Tk 68.70 in the interbank foreign exchange market, fund manager sources said.
The market witnessed a moderate inflow of remittance and export proceeds that helped dollar fetch gain in the interbank market, they said.
The greenback was, however, steady in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.45 and Tk 69.90 against the previous week's range between Tk 67.49 and Tk 69.90, funds managers said.
The greenback was traded at rates ranging between Tk 72.00 and Tk 72.40 in the local informal market against the previous week's range between Tk 72.10 and Tk 72.40. The brokers used to buy dollar mainly at rates between Tk 72.00 and Tk 72.10 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback were low in the week in comparison to that of the previous week. The daily average transaction was recorded at $ 12.74 million against the previous week's average of $ 14.55 million. The market experienced adequate supply of the greenback that helped maintain the balance between the demand and the supply in the market, they added.
The dealer banks were shy to make 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 continued regular monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank was active in withdrawing cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh government treasury (BGT) bonds to put some pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks continued offering high exchange rates to encourage 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 moved between Rs 40.89 and Rs 41.16 and Pakistani rupee between Rs 60.66 and Rs 60.80.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4755 ringgit and 3.4995 ringgit, and that against the Thai currency between 33.10 baht and 34.56 baht.
In the international market, dollar was traded between 115.13 yen and 116.49 against the previous week's range between 114.17 yen and 115.20 yen. The euro was traded between 1.3657 dollar and 1.3683 dollar against the previous week's range between 1.3474 dollar and 1.3497 dollar.
US dollar gained ground against Bangladesh taka (BDT) last week in spite of a stable demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.60 and Tk 68.70 against the previous week's range between Tk 68.54 and Tk 68.70 in the interbank foreign exchange market, fund manager sources said.
The market witnessed a moderate inflow of remittance and export proceeds that helped dollar fetch gain in the interbank market, they said.
The greenback was, however, steady in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.45 and Tk 69.90 against the previous week's range between Tk 67.49 and Tk 69.90, funds managers said.
The greenback was traded at rates ranging between Tk 72.00 and Tk 72.40 in the local informal market against the previous week's range between Tk 72.10 and Tk 72.40. The brokers used to buy dollar mainly at rates between Tk 72.00 and Tk 72.10 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback were low in the week in comparison to that of the previous week. The daily average transaction was recorded at $ 12.74 million against the previous week's average of $ 14.55 million. The market experienced adequate supply of the greenback that helped maintain the balance between the demand and the supply in the market, they added.
The dealer banks were shy to make 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 continued regular monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank was active in withdrawing cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh government treasury (BGT) bonds to put some pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks continued offering high exchange rates to encourage 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 moved between Rs 40.89 and Rs 41.16 and Pakistani rupee between Rs 60.66 and Rs 60.80.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4755 ringgit and 3.4995 ringgit, and that against the Thai currency between 33.10 baht and 34.56 baht.
In the international market, dollar was traded between 115.13 yen and 116.49 against the previous week's range between 114.17 yen and 115.20 yen. The euro was traded between 1.3657 dollar and 1.3683 dollar against the previous week's range between 1.3474 dollar and 1.3497 dollar.