Call rate drops further, dollar mostly stable
Call money rate dropped further Sunday while the US dollar was mostly stable against the local currency in the inter-bank foreign exchange market, sources said.
The call rate recorded a declining trend on the day despite the central bank's withdrawal of fresh fund from the market, using its reverse repurchase agreement (repo) tool.
The Bangladesh Bank (BB) withdrew fund from the market amounting to Tk 450 million at five per cent Sunday through the reverse repo auction to keep the market stable.
The call rate ranged between 5.75 per cent and 10.75 per cent on the day against 5.75 per cent and 12 per cent of the previous day. However, most of the deals were settled between 7.0 per cent and 7.50 per cent, the market sources added.
The three nationalised commercial banks (NCBs) - Sonali, Janata and Agrani - mostly quoted the call rates between 7.0 per cent and 7.50 per cent Sunday, while the private commercial banks (PCBs) and foreign banks lent funds at 5.75-10.75 per cent.
On the other hand, the US dollar was mostly stable against the local currency on the day, despite short supply of the greenback in the market.
The banks quoted the dollar at Tk 65.65-65.75 on the day, unchanged from the previous level. But most of the deals were settled at Tk 65.65-65.70 on the day.
The NCBs quoted the dollar at Tk 65.66-65.75 on the day, while the PCBs and foreign banks settled their deals at Tk 65.75.
For opening letters of credit (LCs) against imports, the NCBs quoted the dollar at Tk 65.95, while the PCBs and foreign banks sold the greenback at Tk 66.00-66.80 on the day.
The dollar was also steady in the local informal market, fund dealers said.
In the informal market, the dollar was traded between Tk 67.50 and Tk 67.80 against the previous day's range between Tk 67.60 and Tk 67.80. The exchange rate of the Indian rupee against the taka ranged between Tk 1.48 and Tk 1.53, money dealers said.
In the formal inter-bank market, the exchange rate of the greenback against the taka ranged between Tk 65.65 and Tk 65.75 against the previous day's range. The dollar was firm in public deals and transacted at rates between Tk 64.80 and Tk 66.72.
In the regional market, the exchange rate of the dollar against the Indian rupee varied between Rs 44.28 and Rs 44.33 and between Rs 59.65 and Rs 59.75 against Pakistani rupee.
Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.7690 ringgit and 3.7700 ringgit and against the Thai currency between 40.825 baht and 40.86 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 113.79 yen and 113.92 yen and the rate of the euro against the greenback moved between 1.2125 dollar and 1.2206 dollar.
As on October 09, 2005, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 3.94000 per cent for one month, 4.11500 per cent for three months and 4.30000 per cent for six months.