Greenback maintains steady level
Sunday, 7 October 2007
Sarwar Zahan
US dollar maintained its steady level with a downward bias against Bangladesh taka (BDT) last week despite higher demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.67 and Tk 68.71 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 supply line was sustained with steady inward remittance and export earnings that enabled taka to maintain its earlier gains in the interbank market, they said.
The greenback also remained steady in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, the greenback was almost unchanged and it was traded at rates ranging between Tk 71.10 and Tk 71.50 in the local informal market against the previous week's range between Tk 71.00 and Tk 71.50. The brokers bought dollar mainly at rates between Tk 71.10 and Tk 71.20 and sold it between Tk 71.30 and 71.50, money dealers said.
The spot transactions in greenback was high in the week in comparison to that of the previous week. The total transaction was recorded at around $ 43.00 million against the previous week's total of $ 34.00 million. The steady flow of dollar in the market ensured balance between the demand and the supply in the market, they added.
The dealer banks were less active 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank also withdraw cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bagladesh Government Treasury (BGT) bonds to maintain 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.
In the regional market, the exchange rate of dollar against Indian rupee moved between Rs 39.39 and Rs 39.76 and Pakistani rupee between Rs 60.60 and Rs 60.85.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3920 ringgit and 3.4280 ringgit, and that against the Thai currency between 31.80 baht and 34.27 baht.
In the international market, dollar was traded between 114.79 yen and 116.68 against the previous week's range between 114.48 yen and 115.65 yen. The euro was traded between 1.4113 dollar and 1.4277 dollar against the previous week's range between 1.4090 dollar and 1.4160 dollar.
US dollar maintained its steady level with a downward bias against Bangladesh taka (BDT) last week despite higher demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.67 and Tk 68.71 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 supply line was sustained with steady inward remittance and export earnings that enabled taka to maintain its earlier gains in the interbank market, they said.
The greenback also remained steady in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, the greenback was almost unchanged and it was traded at rates ranging between Tk 71.10 and Tk 71.50 in the local informal market against the previous week's range between Tk 71.00 and Tk 71.50. The brokers bought dollar mainly at rates between Tk 71.10 and Tk 71.20 and sold it between Tk 71.30 and 71.50, money dealers said.
The spot transactions in greenback was high in the week in comparison to that of the previous week. The total transaction was recorded at around $ 43.00 million against the previous week's total of $ 34.00 million. The steady flow of dollar in the market ensured balance between the demand and the supply in the market, they added.
The dealer banks were less active 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and to ensure discipline in the foreign exchange market, sources said.
The central bank also withdraw cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bagladesh Government Treasury (BGT) bonds to maintain 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.
In the regional market, the exchange rate of dollar against Indian rupee moved between Rs 39.39 and Rs 39.76 and Pakistani rupee between Rs 60.60 and Rs 60.85.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3920 ringgit and 3.4280 ringgit, and that against the Thai currency between 31.80 baht and 34.27 baht.
In the international market, dollar was traded between 114.79 yen and 116.68 against the previous week's range between 114.48 yen and 115.65 yen. The euro was traded between 1.4113 dollar and 1.4277 dollar against the previous week's range between 1.4090 dollar and 1.4160 dollar.