weekly currency roundup
Saturday, 23 June 2007
Commercial Bank of Ceylon
June 17 - June 21, 2007
Local USD BDT market was eventful last week. Total volume of transaction was around USD 68.43 million against USD 77.10 million in the previous week.
Average volatility of USD BDT rate throughout the week was 1.52 per cent compared to 10.48 per cent in the week before. USD rate declined against BDT at the beginning of the week due to higher supply, but increased at the middle of the week since the demand-supply scenario reversed. Market is expected to remain choppy in the coming week as well, while more stability of rate is expected at the beginning of next month.
Last week the daily average volume of USD BDT transaction was USD 13.69 million against 15.42 million in the previous week, which was 11.25 per cent lower.
USD/BDT selling rates for importers of major foreign and private banks ended at Tk 69.30/69.50, while USD buying rates from exporters ended at Tk 68.20/68.30. Exchange rates for non-commercial transactions (i.e. telegraphic transfer as donations, wage earners' remittance, dollar drafts etc), ended at Tk 68.25 to Tk 68.45 (T.T buying rates), and Tk 69.25 to Tk 69.45 (T.T selling rate).
Last week the USD BDT swap market was sombre. Total amount of swap transaction of around six million took place in the week, while it was 21.15 million in the week before.
In the unofficial market, the USD/BDT rate was Tk 70.60/70.90, which was quite similar to that of the previous week.
Local Money Market
The local call money market was stable last week and the momentum was downward since large borrowers reduced their dependence on call money. The inter-bank call money rate hovered between the ranges of 6.50 per cent and 7.00 per cent, compared to 6.75 per cent and 9.00 per cent of the week before.
Local money market dealers are expecting the call money rate to be stable in the coming week, since most of the banks have been maintaining high CRR from the beginning of the fortnight ahead of half-yearly closing, so that dependence on money market at the month-end will be reduced.
Standard Chartered Bank
The demand for US dollar was stable in the week. Dollar showed a slight upward trend against Bangladeshi taka at the beginning of the week, but remained range bound in the later half of the week.
Money Market
Overnight money market was stable in the week. The call money rate was range bound and most of the deals ranged between 6.60-6.75 per cent throughout the week.
Last week saw the market moving in favour of dollar with disappearing expectation of Fed rate cut and rising bond yields. Yen was still under pressure as Bank of Japan was seen doing nothing to change the market view of a slow and steady rate rise.
US dollar
US dollar gained against yen in the week, but lost ground against euro after data showed that the consumer prices for May rose at its slowest pace since March 2006. However, dollar recouped some ground against euro later in the week with focus on U.S. interest rate.
Euro
Euro hit a record high against yen and also made gains against US dollar. However the gain against US dollar was somewhat hampered after a survey showed weak German investor confidence. However, euro remained steady for the rest of the week.
Yen
Yen was at a 4-1/2 week low against USD and a lifetime low of 166.11 against euro after the BOJ said they are unwilling to increase interest rates form its current level of 0.5 percent. This is the lowest interest rate in the industrialised world, making yen vulnerable to carry trades.
Sterling
Higher-yielding currencies generally drew support in the week. Sterling, which offered the highest interest rate among the G7 currencies, hit a 3-1/2 month high against euro. Pound sterling was extending gains later in the week when the Bank of England's minutes showed bigger-than-expected opposition to keep interest rates on hold this month. The minutes fanned expectations the BoE could raise rates as soon as July.
June 17 - June 21, 2007
Local USD BDT market was eventful last week. Total volume of transaction was around USD 68.43 million against USD 77.10 million in the previous week.
Average volatility of USD BDT rate throughout the week was 1.52 per cent compared to 10.48 per cent in the week before. USD rate declined against BDT at the beginning of the week due to higher supply, but increased at the middle of the week since the demand-supply scenario reversed. Market is expected to remain choppy in the coming week as well, while more stability of rate is expected at the beginning of next month.
Last week the daily average volume of USD BDT transaction was USD 13.69 million against 15.42 million in the previous week, which was 11.25 per cent lower.
USD/BDT selling rates for importers of major foreign and private banks ended at Tk 69.30/69.50, while USD buying rates from exporters ended at Tk 68.20/68.30. Exchange rates for non-commercial transactions (i.e. telegraphic transfer as donations, wage earners' remittance, dollar drafts etc), ended at Tk 68.25 to Tk 68.45 (T.T buying rates), and Tk 69.25 to Tk 69.45 (T.T selling rate).
Last week the USD BDT swap market was sombre. Total amount of swap transaction of around six million took place in the week, while it was 21.15 million in the week before.
In the unofficial market, the USD/BDT rate was Tk 70.60/70.90, which was quite similar to that of the previous week.
Local Money Market
The local call money market was stable last week and the momentum was downward since large borrowers reduced their dependence on call money. The inter-bank call money rate hovered between the ranges of 6.50 per cent and 7.00 per cent, compared to 6.75 per cent and 9.00 per cent of the week before.
Local money market dealers are expecting the call money rate to be stable in the coming week, since most of the banks have been maintaining high CRR from the beginning of the fortnight ahead of half-yearly closing, so that dependence on money market at the month-end will be reduced.
Standard Chartered Bank
The demand for US dollar was stable in the week. Dollar showed a slight upward trend against Bangladeshi taka at the beginning of the week, but remained range bound in the later half of the week.
Money Market
Overnight money market was stable in the week. The call money rate was range bound and most of the deals ranged between 6.60-6.75 per cent throughout the week.
Last week saw the market moving in favour of dollar with disappearing expectation of Fed rate cut and rising bond yields. Yen was still under pressure as Bank of Japan was seen doing nothing to change the market view of a slow and steady rate rise.
US dollar
US dollar gained against yen in the week, but lost ground against euro after data showed that the consumer prices for May rose at its slowest pace since March 2006. However, dollar recouped some ground against euro later in the week with focus on U.S. interest rate.
Euro
Euro hit a record high against yen and also made gains against US dollar. However the gain against US dollar was somewhat hampered after a survey showed weak German investor confidence. However, euro remained steady for the rest of the week.
Yen
Yen was at a 4-1/2 week low against USD and a lifetime low of 166.11 against euro after the BOJ said they are unwilling to increase interest rates form its current level of 0.5 percent. This is the lowest interest rate in the industrialised world, making yen vulnerable to carry trades.
Sterling
Higher-yielding currencies generally drew support in the week. Sterling, which offered the highest interest rate among the G7 currencies, hit a 3-1/2 month high against euro. Pound sterling was extending gains later in the week when the Bank of England's minutes showed bigger-than-expected opposition to keep interest rates on hold this month. The minutes fanned expectations the BoE could raise rates as soon as July.