Greenback retains earlier gains against taka
Sarwar Zahan | Sunday, 15 June 2008
US dollar retained its earlier gains against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week on central bank's active intervention, fund managers said.
The demand for the greenback was low, as most banks maintained a buying bias. Some high import payment obligations, though limited in number, put pressure on demand side that helped the dollar to preserve its strength against taka, they said.
The inflow of remittance and export proceeds were also steady to support the supply line, they added.
The inter-bank exchange rate of dollar moved between Tk 68.50 and Tk 68.53 repeating the previous week's range.
The central bank injected dollar into the market to maintain stability in the foreign exchange market, fund managers said.
Most banks tried to refrain from offering greenback in the inter-bank market. The lower inter-bank call money rate also put negligible impact on market behaviour, as the stakeholders took little interest in becoming active, they said.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They, however, were very active in making swap deals that eased some pressure on spot market. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar, however, fell in public deals. Cash dollar in public deals was mostly exchanged at rates varying between Tk 67.25 and Tk 69.80 against the previous week's range between Tk 67.25 and Tk 69.90, fund managers said.
In the informal market, the greenback was steady and it was traded at rates varying between Tk 69.60 and Tk 69.90 in the local informal market against the previous week's range between Tk 69.50 and Tk 70.00. The brokers used to buy dollar mainly at rates between Tk 69.60 and Tk 69.70 and sold it between Tk 69.70 and Tk 69.90, money dealers said.
The spot transactions in greenback stood at around at $ 42.90 million in the full week against the previous week's about $ 61 million indicating an easing demand for the greenback, they said.
The central bank strengthened monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market, sources said.
The commercial banks encouraged Bangladeshi expatriates to transfer their money through the banking channel offering high exchange rates of dollar, money dealers 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 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 42.42 and Rs 42.93 against the previous week's range between Rs 42.15 and Rs 42.75 and Pakistani rupee between Rs 66.90 and Rs 67.80 against the previous week's Rs 66.30 and Rs 67.70.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2620 ringgit and 3.2740 ringgit, and that against the Thai currency between 33.00 baht and 33.36 baht.
The demand for the greenback was low, as most banks maintained a buying bias. Some high import payment obligations, though limited in number, put pressure on demand side that helped the dollar to preserve its strength against taka, they said.
The inflow of remittance and export proceeds were also steady to support the supply line, they added.
The inter-bank exchange rate of dollar moved between Tk 68.50 and Tk 68.53 repeating the previous week's range.
The central bank injected dollar into the market to maintain stability in the foreign exchange market, fund managers said.
Most banks tried to refrain from offering greenback in the inter-bank market. The lower inter-bank call money rate also put negligible impact on market behaviour, as the stakeholders took little interest in becoming active, they said.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They, however, were very active in making swap deals that eased some pressure on spot market. The use of swap deals is usually considered a discouraging market behaviour, they added.
Dollar, however, fell in public deals. Cash dollar in public deals was mostly exchanged at rates varying between Tk 67.25 and Tk 69.80 against the previous week's range between Tk 67.25 and Tk 69.90, fund managers said.
In the informal market, the greenback was steady and it was traded at rates varying between Tk 69.60 and Tk 69.90 in the local informal market against the previous week's range between Tk 69.50 and Tk 70.00. The brokers used to buy dollar mainly at rates between Tk 69.60 and Tk 69.70 and sold it between Tk 69.70 and Tk 69.90, money dealers said.
The spot transactions in greenback stood at around at $ 42.90 million in the full week against the previous week's about $ 61 million indicating an easing demand for the greenback, they said.
The central bank strengthened monitoring and supervision of the activities of the dealer banks to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market, sources said.
The commercial banks encouraged Bangladeshi expatriates to transfer their money through the banking channel offering high exchange rates of dollar, money dealers 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 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 42.42 and Rs 42.93 against the previous week's range between Rs 42.15 and Rs 42.75 and Pakistani rupee between Rs 66.90 and Rs 67.80 against the previous week's Rs 66.30 and Rs 67.70.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.2620 ringgit and 3.2740 ringgit, and that against the Thai currency between 33.00 baht and 33.36 baht.