Greenback losts ground against BDT
Sunday, 30 December 2007
Sarwar Zahan
The US dollar lost its nerve against the Bangladesh taka (BDT) in the inter-bank foreign exchange market over last two weeks due to moderate demand for the greenback, fund managers said.
The market was mostly influenced by festival holidays in international market and sufficient supply of the dollar in the local market.
The exchange rate of the greenback moved between Tk 68.48 and Tk 68.58 against the previous week's range of between Tk 68.60 and Tk 68.61 in the interbank foreign exchange market, sources said.
The market experienced limited demand for the greenback because of lower import payments. The rise in call money rate also discouraged customers to become active in foreign currency transactions. The commercial banks, in addition, avoided cross-currency transactions, they said.
The supply of the dollar increased in the market due to higher flow of inward remittance and export earnings, they added.
The greenback also weakened in public deals and the cash dollar in public deals was exchanged at rates between Tk 67.42 and Tk 69.75 against the previous week's range between Tk 67.47 and Tk 69.90, funds managers said.
In the informal market, the greenback gained and it was traded at rates varying between Tk 68.10 and Tk 68.50 in the local informal market against the previous week's range of between Tk 68.00 and Tk 68.30. The brokers bought the dollar mainly at rates between Tk 68.10 and Tk 68.30 and sold it between Tk 68.40 and 68.50, money dealers said.
The spot transactions in greenback stood at around at $ 56.00 million during the week, but the swap deals increased to stand at around 11 million. The dealer banks were interested in making swap deals against customer requirements to fund their import payment obligations instantly. The higher use of swap deals is usually taken as a discouraging market behaviour, they added.
The balance between the demand and the supply was maintained comfortably with sufficient supply of the greenback in the market, they added.
The central bank was highly alert to monitor and supervise the activities of the dealer banks to check unnecessary transactions in dollar and ensure discipline in the foreign exchange market, sources said.
The central bank almost refrained from withdrawing cash through reverse repurchase agreement (repo) considering the surge in call money rate. It rather injected fresh cash into the market to maintain reasonable call rate.
The commercial banks continued offering high exchange rates to Bangladeshi expatriates for encouraging them to send their money through the banking channel. The flow of inward remittance was higher ahead of Eid festival, fund managers said.
In the regional market, most of the currencies were steady against the dollar. The exchange rate of the Indian rupee against the taka ranged 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 39.20 and Rs 39.50 and the Pakistani rupee between Rs 60.85 and Rs 61.63. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3360 ringgit and 3.3520 ringgit, and that against the Thai currency between 30.30 baht and 33.83 baht.
In the international market, dollar was traded between 114.05 yen and 114.59 against the previous week's range between 111.57 yen and 111.97 yen. The euro was traded between 1.4358 dollar and 1.4511 dollar against the previous week's range between 1.4661 dollar and 1.4723 dollar.
The US dollar lost its nerve against the Bangladesh taka (BDT) in the inter-bank foreign exchange market over last two weeks due to moderate demand for the greenback, fund managers said.
The market was mostly influenced by festival holidays in international market and sufficient supply of the dollar in the local market.
The exchange rate of the greenback moved between Tk 68.48 and Tk 68.58 against the previous week's range of between Tk 68.60 and Tk 68.61 in the interbank foreign exchange market, sources said.
The market experienced limited demand for the greenback because of lower import payments. The rise in call money rate also discouraged customers to become active in foreign currency transactions. The commercial banks, in addition, avoided cross-currency transactions, they said.
The supply of the dollar increased in the market due to higher flow of inward remittance and export earnings, they added.
The greenback also weakened in public deals and the cash dollar in public deals was exchanged at rates between Tk 67.42 and Tk 69.75 against the previous week's range between Tk 67.47 and Tk 69.90, funds managers said.
In the informal market, the greenback gained and it was traded at rates varying between Tk 68.10 and Tk 68.50 in the local informal market against the previous week's range of between Tk 68.00 and Tk 68.30. The brokers bought the dollar mainly at rates between Tk 68.10 and Tk 68.30 and sold it between Tk 68.40 and 68.50, money dealers said.
The spot transactions in greenback stood at around at $ 56.00 million during the week, but the swap deals increased to stand at around 11 million. The dealer banks were interested in making swap deals against customer requirements to fund their import payment obligations instantly. The higher use of swap deals is usually taken as a discouraging market behaviour, they added.
The balance between the demand and the supply was maintained comfortably with sufficient supply of the greenback in the market, they added.
The central bank was highly alert to monitor and supervise the activities of the dealer banks to check unnecessary transactions in dollar and ensure discipline in the foreign exchange market, sources said.
The central bank almost refrained from withdrawing cash through reverse repurchase agreement (repo) considering the surge in call money rate. It rather injected fresh cash into the market to maintain reasonable call rate.
The commercial banks continued offering high exchange rates to Bangladeshi expatriates for encouraging them to send their money through the banking channel. The flow of inward remittance was higher ahead of Eid festival, fund managers said.
In the regional market, most of the currencies were steady against the dollar. The exchange rate of the Indian rupee against the taka ranged 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 39.20 and Rs 39.50 and the Pakistani rupee between Rs 60.85 and Rs 61.63. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3360 ringgit and 3.3520 ringgit, and that against the Thai currency between 30.30 baht and 33.83 baht.
In the international market, dollar was traded between 114.05 yen and 114.59 against the previous week's range between 111.57 yen and 111.97 yen. The euro was traded between 1.4358 dollar and 1.4511 dollar against the previous week's range between 1.4661 dollar and 1.4723 dollar.