Greenback retains strength against Bangladesh taka
Sunday, 14 December 2008
Sarwar Zahan
US dollar retained its strength with upward bias against Bangladesh taka (BDT) in the inter-bank foreign exchange market with only two trading days last week, as increased supply of the greenback helped to meet the high demand for the foreign currency, fund managers said.
Most banks maintained buying mood putting pressure on liquidity facilitating the dollar to stay stronger, they said.
The supply of the greenback was higher with increased inflow remittance ahead of the Eid festival. It reduced some pressure on demand for the dollar.
The central bank provided liquidity supports to a number of banks against selected imports for maintaining stability in the foreign exchange market, they added.
Banks preferred to refrain from selling the greenback and raise reserves with the aim of meeting higher future demands, fund managers said.
The exchange rate of the dollar mainly stood at Tk 68.88 in the inter-bank market against previous week's range of between Tk 68.80 and Tk 68.87.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They were, however, active in making swap deals. The use of swap deals is usually considered as a discouraging market behaviour, fund manager sources said.
The dollar, however, was steady in public deals and it was mostly exchanged at rates varying between Tk 67.80 and Tk 70.85 maintaining previous week's range, funds managers said.
In the informal market, the greenback, on the other hand, dropped because of increase in supply. It was traded at rates varying between Tk 68.20 and Tk 68.60 against the previous week's range of between Tk 68.50 and Tk 68.70. The brokers bought the dollar mainly at rates between Tk 68.20 and Tk 68.40 and sold it between Tk 68.50 and Tk 68.60, money dealers said.
The central bank monitored and supervised the activities of the dealer banks actively to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market.
The daily average transaction of the dollar was more than $ 114 million in the week against the average of $ 112 million of the previous week, which indicated higher demand for the greenback, fund manager sources said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to transfer 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 1.3809 and Tk 1.4098 against previous week's range of between Tk 1.3687 and Tk 1.3842.
The exchange rate of dollar against Indian rupee moved between Rs 48.41 and Rs 49.53 against previous week's range of between Rs 49.57 and Rs 50.37 and Pakistani rupee between Rs 78.65 and Rs 79.25 against previous week's Rs 78.25 and Rs 81.50.
US dollar retained its strength with upward bias against Bangladesh taka (BDT) in the inter-bank foreign exchange market with only two trading days last week, as increased supply of the greenback helped to meet the high demand for the foreign currency, fund managers said.
Most banks maintained buying mood putting pressure on liquidity facilitating the dollar to stay stronger, they said.
The supply of the greenback was higher with increased inflow remittance ahead of the Eid festival. It reduced some pressure on demand for the dollar.
The central bank provided liquidity supports to a number of banks against selected imports for maintaining stability in the foreign exchange market, they added.
Banks preferred to refrain from selling the greenback and raise reserves with the aim of meeting higher future demands, fund managers said.
The exchange rate of the dollar mainly stood at Tk 68.88 in the inter-bank market against previous week's range of between Tk 68.80 and Tk 68.87.
The commercial banks avoided cross-currency transactions complying with the instruction of the central bank. They were, however, active in making swap deals. The use of swap deals is usually considered as a discouraging market behaviour, fund manager sources said.
The dollar, however, was steady in public deals and it was mostly exchanged at rates varying between Tk 67.80 and Tk 70.85 maintaining previous week's range, funds managers said.
In the informal market, the greenback, on the other hand, dropped because of increase in supply. It was traded at rates varying between Tk 68.20 and Tk 68.60 against the previous week's range of between Tk 68.50 and Tk 68.70. The brokers bought the dollar mainly at rates between Tk 68.20 and Tk 68.40 and sold it between Tk 68.50 and Tk 68.60, money dealers said.
The central bank monitored and supervised the activities of the dealer banks actively to check unnecessary transactions in dollar for ensuring discipline in the foreign exchange market.
The daily average transaction of the dollar was more than $ 114 million in the week against the average of $ 112 million of the previous week, which indicated higher demand for the greenback, fund manager sources said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates to transfer 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 1.3809 and Tk 1.4098 against previous week's range of between Tk 1.3687 and Tk 1.3842.
The exchange rate of dollar against Indian rupee moved between Rs 48.41 and Rs 49.53 against previous week's range of between Rs 49.57 and Rs 50.37 and Pakistani rupee between Rs 78.65 and Rs 79.25 against previous week's Rs 78.25 and Rs 81.50.