Greenback maintains high level against BDT
Sunday, 28 December 2008
Sarwar Zahan
US dollar maintained its high level against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week although the transactions of the greenback appeared lower, fund managers said.
Most banks were reluctant to sell out dollar, while they were mostly in buying mood. It helped the greenback retain its strong nerve, they said.
The supply of the greenback remained steady because of holiday mood prevailing in the international market.
The central bank continued providing liquidity supports to selected banks for importing fuels and scrap vessels to ensure stability in the foreign exchange market, they added.
Banks preferred to buy the greenback for increasing respective reserves to meet future demands, fund managers said.
The exchange rate of the dollar mainly stood at Tk 68.92 in the inter-bank market against previous week's range which varied between Tk 68.88 and Tk 68.92.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They, however, remained active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar was steady in public deals and it was mostly exchanged at rates varying between Tk 67.85 and Tk 70.85 maintaining previous week's range, funds managers said.
In the informal market, the greenback was weaker and it was traded at rates varying between Tk 67.80 and Tk 68.30 in the local informal market against the previous week's range of between Tk 68.20 and Tk 68.70. The brokers used to buy dollar mainly at rates between Tk 67.80 and Tk 68.00 and sold it between Tk 68.10 and Tk 68.30, money dealers said.
The central bank regularly monitored and supervised the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The daily average transaction of the dollar was about $ 18 million in the week against the average of around $ 25 million of previous week, which indicated decline in demand for the greenback, fund manager sources said.
The commercial banks offered high exchange rates to encourage Bangladeshi expatriates for transferring their money through the banking channel, said money dealers.
In the regional market, most of the currencies fluctuated against dollar.
The exchange rate of Indian rupee against Bangladesh taka varied between Tk 1.3728 and Tk 1.4689 against previous week's range of between Tk 1.3510 and Tk 1.4353.
The exchange rate of dollar against Indian rupee moved between Rs 47.72 and Rs 50.47 against previous week's range of between Rs 47.55 and Rs 49.73 and Pakistani rupee between Rs 78.25 and Rs 79.75 against previous week's Rs 78.62 and Rs 79.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4066 ringgit and 3.5475 ringgit, and that against the Thai currency between 33.92 baht and 35.14 baht.
In the international market, dollar was traded between 88.99 yen and 90.84 yen against the previous week's range between 87.51 yen and 91.28 yen. Euro was traded between 1.3859 dollar and 1.4022 dollar against the previous week's range between 1.3360 dollar and 1.4439 dollar.
US dollar maintained its high level against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week although the transactions of the greenback appeared lower, fund managers said.
Most banks were reluctant to sell out dollar, while they were mostly in buying mood. It helped the greenback retain its strong nerve, they said.
The supply of the greenback remained steady because of holiday mood prevailing in the international market.
The central bank continued providing liquidity supports to selected banks for importing fuels and scrap vessels to ensure stability in the foreign exchange market, they added.
Banks preferred to buy the greenback for increasing respective reserves to meet future demands, fund managers said.
The exchange rate of the dollar mainly stood at Tk 68.92 in the inter-bank market against previous week's range which varied between Tk 68.88 and Tk 68.92.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They, however, remained active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar was steady in public deals and it was mostly exchanged at rates varying between Tk 67.85 and Tk 70.85 maintaining previous week's range, funds managers said.
In the informal market, the greenback was weaker and it was traded at rates varying between Tk 67.80 and Tk 68.30 in the local informal market against the previous week's range of between Tk 68.20 and Tk 68.70. The brokers used to buy dollar mainly at rates between Tk 67.80 and Tk 68.00 and sold it between Tk 68.10 and Tk 68.30, money dealers said.
The central bank regularly monitored and supervised the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The daily average transaction of the dollar was about $ 18 million in the week against the average of around $ 25 million of previous week, which indicated decline in demand for the greenback, fund manager sources said.
The commercial banks offered high exchange rates to encourage Bangladeshi expatriates for transferring their money through the banking channel, said money dealers.
In the regional market, most of the currencies fluctuated against dollar.
The exchange rate of Indian rupee against Bangladesh taka varied between Tk 1.3728 and Tk 1.4689 against previous week's range of between Tk 1.3510 and Tk 1.4353.
The exchange rate of dollar against Indian rupee moved between Rs 47.72 and Rs 50.47 against previous week's range of between Rs 47.55 and Rs 49.73 and Pakistani rupee between Rs 78.25 and Rs 79.75 against previous week's Rs 78.62 and Rs 79.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4066 ringgit and 3.5475 ringgit, and that against the Thai currency between 33.92 baht and 35.14 baht.
In the international market, dollar was traded between 88.99 yen and 90.84 yen against the previous week's range between 87.51 yen and 91.28 yen. Euro was traded between 1.3859 dollar and 1.4022 dollar against the previous week's range between 1.3360 dollar and 1.4439 dollar.