Greenback sustains earlier gains
Sunday, 28 October 2007
Sarwar Zahan
US dollar sustained its earlier gains against Bangladesh taka (BDT) last week despite higher demand for greenback, fund managers said.
The exchange rate of greenback moved between Tk 68.69 and Tk 68.71 against the previous week's range between Tk 68.68 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The demand for dollar was stronger because of higher import obligations. The steady inflow of remittance and export earnings were adequate to keep greenback stable in the interbank market, they said.
Greenback was almost steady in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, greenback fell and it was traded at rates ranging between Tk 70.20 and Tk 70.60 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 70.20 and Tk 70.40 and sold it between Tk 70.50 and 70.60, money dealers said.
The spot transactions in greenback was high and the total transaction in three sessions was recorded at around at $48.00 million against the previous week's $26 million. The balance between the demand and the supply was maintained with steady supply of dollar, they added.
The dealer banks were cautiously 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank, in addition, withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government Treasury (BGT) bonds to maintain pressure on liquidity and discourage buying of excess dollar by keeping the call money rate at a higher-than-expected 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 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 39.37 and Rs 39.83 and Pakistani rupee between Rs 60.52 and Rs 60.75.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3530 ringgit and 3.3800 ringgit, and that against Thai currency between 31.47 baht and 34.18 baht.
In the international market, dollar was traded between 114.03 yen and 114.83 against the previous week's range between 115.50 yen and 117.07 yen. Euro was traded between 1.4171 dollar and 1.4262 dollar against the previous week's range between 1.4156 dollar and 1.4296 dollar.
US dollar sustained its earlier gains against Bangladesh taka (BDT) last week despite higher demand for greenback, fund managers said.
The exchange rate of greenback moved between Tk 68.69 and Tk 68.71 against the previous week's range between Tk 68.68 and Tk 68.71 in the interbank foreign exchange market, fund manager sources said.
The demand for dollar was stronger because of higher import obligations. The steady inflow of remittance and export earnings were adequate to keep greenback stable in the interbank market, they said.
Greenback was almost steady in public deals and cash dollar in public deals was exchanged at rates between Tk 67.60 and Tk 69.90 against the previous week's range between Tk 67.55 and Tk 69.90, funds managers said.
In the informal market, greenback fell and it was traded at rates ranging between Tk 70.20 and Tk 70.60 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 70.20 and Tk 70.40 and sold it between Tk 70.50 and 70.60, money dealers said.
The spot transactions in greenback was high and the total transaction in three sessions was recorded at around at $48.00 million against the previous week's $26 million. The balance between the demand and the supply was maintained with steady supply of dollar, they added.
The dealer banks were cautiously 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 conducted regular monitoring and supervision to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank, in addition, withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank bills and Bangladesh Government Treasury (BGT) bonds to maintain pressure on liquidity and discourage buying of excess dollar by keeping the call money rate at a higher-than-expected 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 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 39.37 and Rs 39.83 and Pakistani rupee between Rs 60.52 and Rs 60.75.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.3530 ringgit and 3.3800 ringgit, and that against Thai currency between 31.47 baht and 34.18 baht.
In the international market, dollar was traded between 114.03 yen and 114.83 against the previous week's range between 115.50 yen and 117.07 yen. Euro was traded between 1.4171 dollar and 1.4262 dollar against the previous week's range between 1.4156 dollar and 1.4296 dollar.