Greenback soft against BDT
Sunday, 29 July 2007
Sarwar Zahan
US dollar was soft against Bangladesh taka (BDT) last week although the demand for the greenback was high. The exchange rate of the greenback moved between Tk 68.52 and Tk 68.66 against the previous week's range between Tk 68.60 and Tk 68.63 in the interbank foreign exchange market, fund manager sources said.
The higher import payments resulted in increased demand for the greenback. The supply of dollar was nourished with increased inward remittance and higher export proceeds that helped the BDT sustain its earlier gains against the major foreign currency, they said.
Dollar, however, lost ground in public deals, but it maintained its steady level in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.48 and Tk 69.90 against the previous week's range between Tk 66.60 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 117 million dollars against the previous week's about 57 million dollars. The supply of the greenback was adequate to ensure the demand-supply balance in the market, they added.
The dealer banks maintained a reserved mood 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 intensified its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank as usual withdrew cash using its monetary tools including reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury bonds to discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks offered 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. The exchange rate of dollar against Indian rupee varied between Rs 40.19 and Rs 40.35. Pakistani rupee ranged between Rs 60.39 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4075 ringgit and 3.4160 ringgit and against Thai baht between 29.80 bahts and 33.72 bahts.
In the international market, dollar was traded between 119.38 yen and 121.41 against the previous week's range between 121.81 yen and 122.15 yen. Euro was traded between 1.3712 dollar and 1.3840 dollar against the previous week's range between 1.3783 dollar and 1.3819 dollar.
US dollar was soft against Bangladesh taka (BDT) last week although the demand for the greenback was high. The exchange rate of the greenback moved between Tk 68.52 and Tk 68.66 against the previous week's range between Tk 68.60 and Tk 68.63 in the interbank foreign exchange market, fund manager sources said.
The higher import payments resulted in increased demand for the greenback. The supply of dollar was nourished with increased inward remittance and higher export proceeds that helped the BDT sustain its earlier gains against the major foreign currency, they said.
Dollar, however, lost ground in public deals, but it maintained its steady level in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.48 and Tk 69.90 against the previous week's range between Tk 66.60 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 70.70 and Tk 71.00 in the local informal market against the previous week's range between Tk 70.60 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.70 and Tk 70.80 and sold it between Tk 70.90 and 71.00, money dealers said.
The total spot transactions in greenback during the week stood at around 117 million dollars against the previous week's about 57 million dollars. The supply of the greenback was adequate to ensure the demand-supply balance in the market, they added.
The dealer banks maintained a reserved mood 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 intensified its monitoring and supervision activities to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank as usual withdrew cash using its monetary tools including reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government treasury bonds to discourage buying of dollar by keeping the call money rate at a reasonable level, they said.
The commercial banks offered 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. The exchange rate of dollar against Indian rupee varied between Rs 40.19 and Rs 40.35. Pakistani rupee ranged between Rs 60.39 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4075 ringgit and 3.4160 ringgit and against Thai baht between 29.80 bahts and 33.72 bahts.
In the international market, dollar was traded between 119.38 yen and 121.41 against the previous week's range between 121.81 yen and 122.15 yen. Euro was traded between 1.3712 dollar and 1.3840 dollar against the previous week's range between 1.3783 dollar and 1.3819 dollar.