Greenback strong against Taka
Sunday, 23 November 2008
Sarwar Zahan
US dollar maintained its stronghold against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to high demand for the greenback, fund managers said.
The market experienced buying pressure, as most banks preferred to buy the greenback, they said.
The central bank provided overdraft and sale-supports to selected banks to maintain stability in the market.
The supply line was nourished with moderate remittance and export income inflows. Banks were mostly reluctant to sell the greenback in the inter-bank market. Many of them remained more interested in maintaining their reserves to meet anticipated high future demands, fund managers said.
The liquidity support provided by the central bank helped easing pressure on the foreign currency and maintaining balance between demand and supply. It protected the inter-bank market from further pressure, they said.
The exchange rate of the dollar moved between Tk 68.70 and Tk 68.75 in the inter-bank market against previous week's range of between Tk 68.68 and Tk 68.75.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were also moderately active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar, however, posted gain in public deals and it was mostly exchanged at rates varying between Tk 67.67 and Tk 70.85 against previous week's range of between Tk 67.62 and Tk 70.80, funds managers said.
In the informal market, the greenback, on the other hand, weakened and it was traded at rates varying between Tk 70.00 and Tk 70.30 in the local informal market against the previous week's range of between Tk 70.00 and Tk 70.20. The brokers used to buy dollar mainly at rates between Tk 70.00 and Tk 70.10 and sold it between Tk 70.20 and Tk 70.30, money dealers said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to maintain discipline in the foreign exchange market.
The daily average transaction of the dollar was more than 53.80 million in the week against the average of $ 46.20 million of previous week, which indicated increase in demand for the greenback, fund manager sources said.
The commercial banks offered high interest rates to Bangladeshi expatriates encouraging them 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 1.3505 and Tk 1.4010 against previous week's range of between Tk 1.3878 and Tk 1.4414.
The exchange rate of dollar against Indian rupee moved between Rs 48.82 and Rs 50.12 against previous week's range of between Rs 47.30 and Rs 49.55 and Pakistani rupee between Rs 79.37 and Rs 80.50 against previous week's 80.45 and Rs 81.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.6025 ringgit and 3.6260 ringgit, and that against the Thai currency between 34.98 baht and 35.23 baht.
In the international market, dollar was traded between 95.55 yen and 97.08 yen against the previous week's range between 95.96 yen and 99.22 yen. Euro was traded between 1.2532 dollar and 1.2666 dollar against the previous week's range between 1.2518 dollar and 1.2897 dollar.
US dollar maintained its stronghold against Bangladesh taka (BDT) in the inter-bank foreign exchange market last week due to high demand for the greenback, fund managers said.
The market experienced buying pressure, as most banks preferred to buy the greenback, they said.
The central bank provided overdraft and sale-supports to selected banks to maintain stability in the market.
The supply line was nourished with moderate remittance and export income inflows. Banks were mostly reluctant to sell the greenback in the inter-bank market. Many of them remained more interested in maintaining their reserves to meet anticipated high future demands, fund managers said.
The liquidity support provided by the central bank helped easing pressure on the foreign currency and maintaining balance between demand and supply. It protected the inter-bank market from further pressure, they said.
The exchange rate of the dollar moved between Tk 68.70 and Tk 68.75 in the inter-bank market against previous week's range of between Tk 68.68 and Tk 68.75.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were also moderately active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar, however, posted gain in public deals and it was mostly exchanged at rates varying between Tk 67.67 and Tk 70.85 against previous week's range of between Tk 67.62 and Tk 70.80, funds managers said.
In the informal market, the greenback, on the other hand, weakened and it was traded at rates varying between Tk 70.00 and Tk 70.30 in the local informal market against the previous week's range of between Tk 70.00 and Tk 70.20. The brokers used to buy dollar mainly at rates between Tk 70.00 and Tk 70.10 and sold it between Tk 70.20 and Tk 70.30, money dealers said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to maintain discipline in the foreign exchange market.
The daily average transaction of the dollar was more than 53.80 million in the week against the average of $ 46.20 million of previous week, which indicated increase in demand for the greenback, fund manager sources said.
The commercial banks offered high interest rates to Bangladeshi expatriates encouraging them 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 1.3505 and Tk 1.4010 against previous week's range of between Tk 1.3878 and Tk 1.4414.
The exchange rate of dollar against Indian rupee moved between Rs 48.82 and Rs 50.12 against previous week's range of between Rs 47.30 and Rs 49.55 and Pakistani rupee between Rs 79.37 and Rs 80.50 against previous week's 80.45 and Rs 81.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.6025 ringgit and 3.6260 ringgit, and that against the Thai currency between 34.98 baht and 35.23 baht.
In the international market, dollar was traded between 95.55 yen and 97.08 yen against the previous week's range between 95.96 yen and 99.22 yen. Euro was traded between 1.2532 dollar and 1.2666 dollar against the previous week's range between 1.2518 dollar and 1.2897 dollar.