Greenback retains strength against BDT
Sunday, 21 October 2007
Sarwar Zahan
US dollar retained its strength against Bangladesh taka (BDT) last week as there was strong demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.68 and Tk 68.71 maintaining the previous week's range in the interbank foreign exchange market, fund manager sources said.
The demand for dollar remained strong as major banks had to meet staggered import obligations. The steady inflow of remittance and export proceeds, however, enabled taka to sustain its earlier gains in the interbank market, they said.
The greenback was almost steady in public deals and cash dollar in public deals was exchanged at rates between Tk 67.55 and Tk 69.90 against the previous week's range between Tk 67.60 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.60 and Tk 71.00 in the local informal market against the previous week's range between Tk 71.00 and Tk 71.50. The brokers used to buy dollar mainly at rates between Tk 70.60 and Tk 70.70 and sold it between Tk 70.90 and 71.00, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $ 26.00 million. The balance between the demand and the supply was maintained with steady supply of dollar, they added.
The dealer banks were moderately 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 continued monitoring and supervision to check unnecessary transactions in dollar by dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) bonds to keep pressure on liquidity and discourage buying of dollar by maintaining the call money rate at a higher-than-expected level, they said.
The commercial banks maintained their strategy of 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 ended steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.32 and Rs 39.60 and Pakistani rupee between Rs 60.52 and Rs 60.78.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3705 ringgit and 3.3860 ringgit, and that against Thai currency between 31.40 baht and 34.46 baht.
In the international market, dollar was traded between 115.50 yen and 117.07 against the previous week's range between 114.79 yen and 116.68 yen. Euro was traded between 1.4156 dollar and 1.4296 dollar against the previous week's range between 1.4113 dollar and 1.4277 dollar.
US dollar retained its strength against Bangladesh taka (BDT) last week as there was strong demand for the greenback, fund managers said.
The exchange rate of the greenback fluctuated between Tk 68.68 and Tk 68.71 maintaining the previous week's range in the interbank foreign exchange market, fund manager sources said.
The demand for dollar remained strong as major banks had to meet staggered import obligations. The steady inflow of remittance and export proceeds, however, enabled taka to sustain its earlier gains in the interbank market, they said.
The greenback was almost steady in public deals and cash dollar in public deals was exchanged at rates between Tk 67.55 and Tk 69.90 against the previous week's range between Tk 67.60 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.60 and Tk 71.00 in the local informal market against the previous week's range between Tk 71.00 and Tk 71.50. The brokers used to buy dollar mainly at rates between Tk 70.60 and Tk 70.70 and sold it between Tk 70.90 and 71.00, money dealers said.
The spot transactions in greenback were high and the total transaction in three sessions was recorded at around at $ 26.00 million. The balance between the demand and the supply was maintained with steady supply of dollar, they added.
The dealer banks were moderately 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 continued monitoring and supervision to check unnecessary transactions in dollar by dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bangladesh Government Treasury (BGT) bonds to keep pressure on liquidity and discourage buying of dollar by maintaining the call money rate at a higher-than-expected level, they said.
The commercial banks maintained their strategy of 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 ended steady against dollar. The exchange rate of Indian rupee against taka ranged between Tk 1.56 and Tk 1.71.
The exchange rate of dollar against Indian rupee moved between Rs 39.32 and Rs 39.60 and Pakistani rupee between Rs 60.52 and Rs 60.78.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3705 ringgit and 3.3860 ringgit, and that against Thai currency between 31.40 baht and 34.46 baht.
In the international market, dollar was traded between 115.50 yen and 117.07 against the previous week's range between 114.79 yen and 116.68 yen. Euro was traded between 1.4156 dollar and 1.4296 dollar against the previous week's range between 1.4113 dollar and 1.4277 dollar.