Greenback weak against BDT
Sunday, 5 August 2007
Sarwar Zahan
US dollar was weak against Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback moved between Tk 68.50 and Tk 68.52 against the previous week's range between Tk 68.52 and Tk 68.66 in the interbank foreign exchange market, fund manager sources said.
The market witnessed a moderate demand for dollar due to lower import payments. The supply of greenback was sufficient because of increased inward remittance and higher export proceeds forcing the foreign currency to surrender its earlier gains to taka, they said.
The greenback, however, maintained its steady level in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.49 and Tk 69.90 against the previous week's range between Tk 66.48 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 against the previous week's range between Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.60 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 89 million dollars against the previous week's about 117 million dollars. Sufficient supply of the greenback ensured the demand-supply balance in the market, 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 maintained regular 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 withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank Bills to put pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, maintained its stable behaviour, they said.
The commercial banks encouraged Bangladeshi expatriates by offering high exchange rates 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 40.23 and Rs 40.59. Pakistani rupee ranged between Rs 60.40 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4520 ringgit and 3.4775 ringgit and against Thai baht between 29.75 bahts and 33.89 bahts.
In the international market, dollar was traded between 118.54 yen and 119.17 yen against the previous week's range between 119.38 yen and 121.41 yen. Euro was traded between 1.3632 dollar and 1.3707 dollar against the previous week's range between 1.3712 dollar and 1.3840 dollar.
US dollar was weak against Bangladesh taka (BDT) last week due to lower demand for the greenback. The exchange rate of the greenback moved between Tk 68.50 and Tk 68.52 against the previous week's range between Tk 68.52 and Tk 68.66 in the interbank foreign exchange market, fund manager sources said.
The market witnessed a moderate demand for dollar due to lower import payments. The supply of greenback was sufficient because of increased inward remittance and higher export proceeds forcing the foreign currency to surrender its earlier gains to taka, they said.
The greenback, however, maintained its steady level in public deals as well as in the local informal market. Cash dollar in public deals was exchanged at rates between Tk 66.49 and Tk 69.90 against the previous week's range between Tk 66.48 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 against the previous week's range between Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.60 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 89 million dollars against the previous week's about 117 million dollars. Sufficient supply of the greenback ensured the demand-supply balance in the market, 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 maintained regular 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 withdrew cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank Bills to put pressure on liquidity and discourage buying of dollar by keeping the call money rate at a reasonable level. The market, however, maintained its stable behaviour, they said.
The commercial banks encouraged Bangladeshi expatriates by offering high exchange rates 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 40.23 and Rs 40.59. Pakistani rupee ranged between Rs 60.40 and Rs 60.60.
The exchange rate of dollar against Malaysian ringgit varied between 3.4520 ringgit and 3.4775 ringgit and against Thai baht between 29.75 bahts and 33.89 bahts.
In the international market, dollar was traded between 118.54 yen and 119.17 yen against the previous week's range between 119.38 yen and 121.41 yen. Euro was traded between 1.3632 dollar and 1.3707 dollar against the previous week's range between 1.3712 dollar and 1.3840 dollar.