US dollar steady against BDT
Sunday, 19 October 2008
Sarwar Zahan
US dollar remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market despite higher demand for the greenback on comfortable flow of the foreign currency, fund managers said.
The supply line of the currency was nourished with steady inward remittance and export earnings that helped maintain balance between supply and demand. The demand appeared higher due to higher import payment obligations, they said.
The central bank was active in providing supports to selected banks for ensuring stability in the market. It protracted the inter-bank market from pressure, they added.
Private sector commercial banks also took interest in playing active roles in inter-bank market, they said.
The inter-bank market maintained a single exchange rate of the dollar staying at Tk 68.52 against previous week's range of between Tk 68.51 and Tk 68.52.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were, however, very active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar, however, posted gain in public deals and it was mostly exchanged at rates varying between Tk 67.47 and Tk 70.65 against previous week's range of between Tk 67.47 and Tk 69.80, funds managers said.
In the informal market, the greenback appeared weaker and it was traded at rates varying between Tk 70.00 and Tk 70.30 in the local informal market against the previous week's range of Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.00 and Tk 70.10 and sold it between Tk 70.30 and Tk 70.35, money dealers said.
The spot transactions in greenback were on average around $ 15.50 million per day against previous week's average of $ 10.20 million indicating higher demand for the greenback, they said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The liquidity support provided by the central bank to selected commercial banks for meeting energy related import obligations reduced pressure on liquidity, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer their money through the banking channel, money dealers said.
In the regional market, most of the currencies fluctuated against dollar. The exchange rate of Indian rupee against taka, however, was stable ranging between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 47.52 and Rs 48.73 against previous week's range of between Rs 46.92 and Rs 49.87 and Pakistani rupee between Rs 78.40 and Rs 82.00 against previous week's Rs 78.37 and Rs 79.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4890 ringgit and 3.5255 ringgit, and that against the Thai currency between 34.07 baht and 34.45 baht.
In the international market, dollar was traded between 100.43 yen and 102.85 yen against the previous week's range between 99.84 yen and 105.48 yen. Euro was traded between 1.3403 dollar and 1.3747 dollar against the previous week's range between 1.3591 dollar and 1.3666 dollar.
US dollar remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market despite higher demand for the greenback on comfortable flow of the foreign currency, fund managers said.
The supply line of the currency was nourished with steady inward remittance and export earnings that helped maintain balance between supply and demand. The demand appeared higher due to higher import payment obligations, they said.
The central bank was active in providing supports to selected banks for ensuring stability in the market. It protracted the inter-bank market from pressure, they added.
Private sector commercial banks also took interest in playing active roles in inter-bank market, they said.
The inter-bank market maintained a single exchange rate of the dollar staying at Tk 68.52 against previous week's range of between Tk 68.51 and Tk 68.52.
The commercial banks avoided cross-currency transactions responding to the instruction of the central bank. They were, however, very active in making swap deals. The use of swap deals is usually considered as discouraging market behaviour, fund manager sources said.
Dollar, however, posted gain in public deals and it was mostly exchanged at rates varying between Tk 67.47 and Tk 70.65 against previous week's range of between Tk 67.47 and Tk 69.80, funds managers said.
In the informal market, the greenback appeared weaker and it was traded at rates varying between Tk 70.00 and Tk 70.30 in the local informal market against the previous week's range of Tk 70.70 and Tk 71.00. The brokers used to buy dollar mainly at rates between Tk 70.00 and Tk 70.10 and sold it between Tk 70.30 and Tk 70.35, money dealers said.
The spot transactions in greenback were on average around $ 15.50 million per day against previous week's average of $ 10.20 million indicating higher demand for the greenback, they said.
The central bank conducted strong monitoring and supervision of the activities of the dealer banks for checking unnecessary transactions in dollar to ensure discipline in the foreign exchange market.
The liquidity support provided by the central bank to selected commercial banks for meeting energy related import obligations reduced pressure on liquidity, sources said.
The commercial banks offered high exchange rates to Bangladeshi expatriates for encouraging them to transfer their money through the banking channel, money dealers said.
In the regional market, most of the currencies fluctuated against dollar. The exchange rate of Indian rupee against taka, however, was stable ranging between Tk 1.56 and Tk 1.77.
The exchange rate of dollar against Indian rupee moved between Rs 47.52 and Rs 48.73 against previous week's range of between Rs 46.92 and Rs 49.87 and Pakistani rupee between Rs 78.40 and Rs 82.00 against previous week's Rs 78.37 and Rs 79.50.
Besides, the exchange rate of dollar against Malaysian ringgit varied between 3.4890 ringgit and 3.5255 ringgit, and that against the Thai currency between 34.07 baht and 34.45 baht.
In the international market, dollar was traded between 100.43 yen and 102.85 yen against the previous week's range between 99.84 yen and 105.48 yen. Euro was traded between 1.3403 dollar and 1.3747 dollar against the previous week's range between 1.3591 dollar and 1.3666 dollar.