Taka appears stronger, call rate steady
FE Report | Tuesday, 29 July 2008
Bangladesh taka (BDT) posted gain against the US dollar Monday in the inter-bank foreign exchange market due to lower demand for the greenback. The inter-bank call money rate, remained steady with upward bias because of sufficient cash flow in the market, fund managers said.
The exchange rate of the dollar moved between Tk 68.47 and Tk 68.52 in the inter-bank market against previous trading day's range of between Tk 68.48 and Tk 68.53.
The dollar, however, retained its strength in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 against previous trading day's range of between Tk 67.40 and Tk 69.63.
In the informal market, the dollar, was also steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market experienced sufficient supply of the greenback, while demand for the dollar was moderate due to lower import obligations. It helped the taka regaining its strength surrendered earlier.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.52 and Rs 42.53 and the Pakistani rupee between Rs 71.25 and Rs 71.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2650 ringgit and 3.2660 ringgit and that against the Thai currency between 33.45 baht and 33.47 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 107.67 yen and 107.70 yen, while the euro moved between 1.5746 dollar and 1.5750 dollar against the greenback.
The call rate in extreme range moved between 7.00 per cent and 12.75 per cent against previous day's range of 7.00 per cent and 12.50 per cent.
Most deals were, however, made at rates varying between 7.00 per cent and 10.00 per cent against previous day's range of 7.00 per cent and 9.00 per cent that reflected higher pressure on liquidity.
The call rate rose above main track in some stray deals with borrowing of cash at high rates by some banks and financial institutions resorted to meeting urgent needs of their clients, fund managers said.
The staggered impact of withdrawing Tk 9.00 billion through government treasury bills Sunday also put pressure on liquidity in an active market, they said.
As on July 28, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45750 per cent for one month, 2.79310 per cent for three months, 3.11180 per cent for six months, 3.18500 per cent for nine months and 3.27180 per cent for twelve months.
The exchange rate of the dollar moved between Tk 68.47 and Tk 68.52 in the inter-bank market against previous trading day's range of between Tk 68.48 and Tk 68.53.
The dollar, however, retained its strength in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.63 against previous trading day's range of between Tk 67.40 and Tk 69.63.
In the informal market, the dollar, was also steady and it was traded at rates varying between Tk 69.80 and Tk 70.10 against previous day's range of between 69.70 and Tk 70.10. The informal market experienced steady demand for the foreign currency on the day, money dealers said.
The market experienced sufficient supply of the greenback, while demand for the dollar was moderate due to lower import obligations. It helped the taka regaining its strength surrendered earlier.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 42.52 and Rs 42.53 and the Pakistani rupee between Rs 71.25 and Rs 71.50. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.2650 ringgit and 3.2660 ringgit and that against the Thai currency between 33.45 baht and 33.47 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 107.67 yen and 107.70 yen, while the euro moved between 1.5746 dollar and 1.5750 dollar against the greenback.
The call rate in extreme range moved between 7.00 per cent and 12.75 per cent against previous day's range of 7.00 per cent and 12.50 per cent.
Most deals were, however, made at rates varying between 7.00 per cent and 10.00 per cent against previous day's range of 7.00 per cent and 9.00 per cent that reflected higher pressure on liquidity.
The call rate rose above main track in some stray deals with borrowing of cash at high rates by some banks and financial institutions resorted to meeting urgent needs of their clients, fund managers said.
The staggered impact of withdrawing Tk 9.00 billion through government treasury bills Sunday also put pressure on liquidity in an active market, they said.
As on July 28, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 2.45750 per cent for one month, 2.79310 per cent for three months, 3.11180 per cent for six months, 3.18500 per cent for nine months and 3.27180 per cent for twelve months.