Lower demand keeps greenback stable
Sunday, 16 September 2007
Sarwar Zahan
The US dollar was stable at its high level against the Bangladesh taka (BDT) last week despite lower demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.69 and Tk 68.71 against the previous week's rate at Tk 68.70 in the interbank foreign exchange market, sources said.
The supply line slightly suffered due to slow inward remittance and export earnings that enabled the dollar to remain strong in the interbank market, they said.
The greenback gained ground in public deals, but it was steady in the local informal market. The 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 67.50 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 72.00 and Tk 72.40 in the local informal market against the previous week's range of between Tk 72.10 and Tk 72.40. The brokers bought the dollar mainly at rates between Tk 72.00 and Tk 72.20 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback was lower in the week in comparison to that of the previous week. The total transaction was recorded at $ 48.70 million against the previous week's average of $ 75 million. The market experienced steady supply of the greenback to maintain the balance between the demand and the supply in the market, they added.
The dealer banks remained 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 regularly monitored the market to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bagladesh Government Treasury (BGT) Bond to put some pressure on liquidity and discourage buying of the dollar by keeping the call money rate at reasonable level, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates for sending 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 the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee hovered between Rs 40.44 and Rs 40.59 and the Pakistani rupee between Rs 60.53 and Rs 60.80.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4890 ringgit and 3.5200 ringgit, and that against the Thai currency between 32.35 baht and 34.34 baht.
In the international market, dollar was traded between 113.38 yen and 115.00 against the previous week's range between 115.35 yen and 115.84 yen. The euro was traded between 1.3770 dollar and 1.3885 dollar against the previous week's range between 1.3624 dollar and 1.3685 dollar.
The US dollar was stable at its high level against the Bangladesh taka (BDT) last week despite lower demand for the greenback, fund managers said.
The exchange rate of the greenback moved between Tk 68.69 and Tk 68.71 against the previous week's rate at Tk 68.70 in the interbank foreign exchange market, sources said.
The supply line slightly suffered due to slow inward remittance and export earnings that enabled the dollar to remain strong in the interbank market, they said.
The greenback gained ground in public deals, but it was steady in the local informal market. The 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 67.50 and Tk 69.90, funds managers said.
In the informal market, the greenback was traded at rates ranging between Tk 72.00 and Tk 72.40 in the local informal market against the previous week's range of between Tk 72.10 and Tk 72.40. The brokers bought the dollar mainly at rates between Tk 72.00 and Tk 72.20 and sold it between Tk 72.30 and 72.40, money dealers said.
The spot transactions in greenback was lower in the week in comparison to that of the previous week. The total transaction was recorded at $ 48.70 million against the previous week's average of $ 75 million. The market experienced steady supply of the greenback to maintain the balance between the demand and the supply in the market, they added.
The dealer banks remained 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 regularly monitored the market to check unnecessary transactions in dollar by the dealer banks and ensure discipline in the foreign exchange market, sources said.
The central bank also withdrew cash through reverse repurchase agreement (repo), treasury bills, Bangladesh Bank Bills and Bagladesh Government Treasury (BGT) Bond to put some pressure on liquidity and discourage buying of the dollar by keeping the call money rate at reasonable level, they said.
The commercial banks encouraged Bangladeshi expatriates offering high exchange rates for sending 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 the Indian rupee against the taka ranged between Tk 1.56 and Tk 1.71.
In the regional market, the exchange rate of the dollar against the Indian rupee hovered between Rs 40.44 and Rs 40.59 and the Pakistani rupee between Rs 60.53 and Rs 60.80.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4890 ringgit and 3.5200 ringgit, and that against the Thai currency between 32.35 baht and 34.34 baht.
In the international market, dollar was traded between 113.38 yen and 115.00 against the previous week's range between 115.35 yen and 115.84 yen. The euro was traded between 1.3770 dollar and 1.3885 dollar against the previous week's range between 1.3624 dollar and 1.3685 dollar.