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Dollar remains unchanged, call rate eases
FE Report
11/9/2005
The dollar remained unchanged Tuesday against the Bangladesh taka in the local inter-bank foreign exchange market but was slightly weaker in the informal market while the inter-bank call money rate showed a downward trend in a moderately active market, money dealers said.
In the formal inter-bank market, the exchange rate of the greenback against the taka stood at Tk 65.75 maintaining the previous working day's range. The dollar also remained firm in public deals and was transacted at rates between Tk 64.80 and Tk 66.75.
In the informal market, the dollar was traded between Tk 67.40 and Tk 67.70 against the previous day's range between Tk 67.60 and Tk 68.00. The exchange rate of the Indian rupee against the taka ranged between Tk 1.48 and Tk 1.53. The informal market experienced lower demand for the dollar, money dealers said.
In the regional market, the exchange rate of the dollar against the Indian rupee varied between Rs 45.96 and Rs 45.98 and against the Pakistani rupee it ranged between Rs 59.62 and Rs 59.72.
As on November 08, 2005, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.09000 per cent for one month, 4.30430 per cent for three months and 4.53000 per cent for six months.
The inter-bank call money rate eased but still moved above the bank rate of 5.00 per cent.
The central bank withdrew Tk 950 million at interest rates between 5.50 per cent and 5.65 per cent from the market through the reverse repurchase agreement (repo) auction. Earlier, the government borrowed a total of Tk 10.277 billion Sunday through the auctions of treasury bills. The market also experienced pressure on liquidity, as the huge cash, withdrawn before the Eid festival, is yet to return to the banking channel, fund managers said.
The call rate mainly ranged between 7.00 per cent and 16.00 per cent against the previous working day's range between 10.00 per cent and 25.00 per cent.
Most of the deals were settled at rates ranging between 10.00 per cent and 12.00 per cent, fund managers said.
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