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Taka firms against euro on higher selling spree [ Business ] 2012-05-23
Taka firms against euro on higher selling spree
The demand for call money remained strong from banks and financial institutions on Tuesday while the Bangladesh taka was slightly firmer against the euro on higher selling by exporters after the single currency dropped against majors in Asian markets driven by hopes for a deal on the eurozone crisis at an upcoming European Union summit, dealers said.The US dollar was traded at Tk 81.8953 today- slightly lower than its previous closing on Monday, dealers said.

" Exporters are now selling their euro holdings as it dipped and banks also do not want to hold the currency as they see the dollar is a safe heaven for them", dealer of a commercial bank said.

The euro bought $1.2785 and 101.53 yen in Tokyo afternoon trade, lower than $1.2815 and 101.62 yen in New York late Monday. The dollar was changing hands at 79.38 yen against 79.30 yen. The demand for the US dollar and the Japanese yen was steady in interbank market, he said.

There was little new to move the euro although the currency may win a measure of support from hopes European leaders will agree on measures to calm nervous markets at their meeting in Brussels on Wednesday, dealers said.

The euro was little changed after French Finance Minister Pierre Moscovici said Tuesday that a Greek exit from the eurozone risks causing an "unpredictable" spread of Europe's debt crisis.

However, market analysts said the unit may edge higher as traders close out short positions. Sentiment has improved somewhat after the weekend G8 summit, even though the dire situation in Greece remains unchanged.
 

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