FE Report

The inter-bank call money rate remained steady with upward bias Sunday despite withdrawal of cash through treasury bills. The US dollar also maintained steady level against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for the greenback, fund managers said.

The call rate in extreme range fluctuated mainly between 3.75 per cent and 10.0 per cent against previous trading day's range of between 3.50 per cent and 10.0 per cent.

Most deals were, however, transacted at rates varying between 4.0 per cent and 5.50 per cent against previous day's range of 4.0 per cent and 5.0 per cent that reflected nominally higher pressure on liquidity, they said.

The call rate, however, rose above main trend in stray deals fluctuating between 7.0 per cent and 10.0 per cent with borrowing of cash by some financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.

The government borrowed Tk 5.50 billion through routine auctions of treasury bills putting slight pressure on liquidity.

The dollar was stable against taka and the exchange rate of the greenback stood at Tk 69.03 maintaining previous week's rate.

The market was moderately active due to weekend in international market.

The greenback remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 69.55 against previous trading day's range of between Tk 67.85 and Tk 69.60.

In the informal market, the dollar was mostly steady and it was traded mainly at rates varying between Tk 70.10 and Tk 70.30 against previous day's range of between Tk 70.0 and Tk 70.20. The informal market experienced steady supply of the foreign currency, money dealers said.

The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.4203 and Tk 1.5060.

In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 46.6250 and Rs 47.6250 and the Pakistani rupee between Rs 80.20 and Rest 80.90. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.4881 ringgit and 3.4946 ringgit and that against the Thai currency between 33.8530 baht and 34.8530 baht.

In the international market, the exchange rate of the dollar against the Japanese yen mainly varied Friday between 94.7280 yen and 94.8280 yen, while the euro moved between 1.3993 dollar and 1.4003 dollar against the greenback.

As on May 24, 2009, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 0.31310 per cent for one month, 0.66000 per cent for three months, 1.20120 per cent for six months, 1.37750 per cent for nine months and 1.53120 per cent for twelve months.