Moderate demands keep dollar, call rate steady
Thursday, 3 January 2008
FE Report
Moderate demand influenced the dollar as well as the call money rate to stay almost stable Wednesday, as the market was yet to break the holiday inertia, fund managers said.
The central bank avoided withdrawal of cash from the market through reverse repurchase agreement (repo) in order to maintain reasonable balance between the demand and the supply, they said.
The inter-bank call money rate rather showed a downward bias with the call rate moving between 6.50 per cent and 10.00 per cent against the range of between 6.50 per cent and 11.50 per cent of previous day.
In most deals, the call was confined to the range of between 6.50 per cent and 7.00 per cent against previous day's 6.75 per cent and 10.00 per cent reflecting easing trend in the market, they added.
The call rate, however, rose above the normal level in some stray deals made with some banks and non-banking financial institutions at high rates, fund managers said.
The central bank refrained from accepting seven reverse repo bids amounting to Tk 5.90 billion on the day to maintain comfortable liquidity in the market.
The US dollar was stable on the day against the Bangladesh taka in the inter-bank foreign exchange market, but it gained ground in public deals.
The greenback maintained a single rate in inter-bank transactions and the exchange rate of the dollar stood at Tk 68.58, fund managers confirmed.
The greenback, however, was stronger in public deals and the cash dollar was exchanged at rates varying between Tk 67.55 and Tk 69.75 against previous day's range of between Tk 67.42 and Tk 69.75.
Moderate demand influenced the dollar as well as the call money rate to stay almost stable Wednesday, as the market was yet to break the holiday inertia, fund managers said.
The central bank avoided withdrawal of cash from the market through reverse repurchase agreement (repo) in order to maintain reasonable balance between the demand and the supply, they said.
The inter-bank call money rate rather showed a downward bias with the call rate moving between 6.50 per cent and 10.00 per cent against the range of between 6.50 per cent and 11.50 per cent of previous day.
In most deals, the call was confined to the range of between 6.50 per cent and 7.00 per cent against previous day's 6.75 per cent and 10.00 per cent reflecting easing trend in the market, they added.
The call rate, however, rose above the normal level in some stray deals made with some banks and non-banking financial institutions at high rates, fund managers said.
The central bank refrained from accepting seven reverse repo bids amounting to Tk 5.90 billion on the day to maintain comfortable liquidity in the market.
The US dollar was stable on the day against the Bangladesh taka in the inter-bank foreign exchange market, but it gained ground in public deals.
The greenback maintained a single rate in inter-bank transactions and the exchange rate of the dollar stood at Tk 68.58, fund managers confirmed.
The greenback, however, was stronger in public deals and the cash dollar was exchanged at rates varying between Tk 67.55 and Tk 69.75 against previous day's range of between Tk 67.42 and Tk 69.75.