The exchange rate of the US dollar against the taka rose further today as banks faced increased payment pressure and settled letters of credit (LCs) ahead of the June-end closing.
Today, City Bank bought the US dollar at Tk 122.60 and sold it at Tk 123.60. A day earlier, the bank’s buying rate was Tk 122.40, while its selling rate was Tk 123.40.
Similarly, Eastern Bank bought the US dollar at Tk 122.60 and sold it at Tk 123.60 today. A day earlier, its buying and selling rates stood at Tk 122.50 and Tk 123.50, respectively.
Meanwhile, the weighted average exchange rate of the US dollar rose to Tk 122.85 today from Tk 122.75 two days earlier, according to data from Bangladesh Bank.
Bankers said the dollar appreciated mainly due to payment pressure ahead of the June-end closing.
At the same time, remittance inflows have slowed compared with the two Eid months, creating a slight shortage of US dollars in the market.
During the first 28 days of June, Bangladesh received $2.58 billion in remittances, up just 1.8 percent from the same period a year earlier, according to Bangladesh Bank data.
In May, however, remittance inflows reached $3.42 billion, marking a 15.34 percent year-on-year increase as migrant workers and Bangladeshis living abroad sent more money home ahead of Eid-ul-Azha.
The treasury head of a private commercial bank told The Daily Star that banks are currently busy settling LCs for government imports and debt servicing before the June-end closing, which has pushed up demand for the US dollar.
He, however, said the increase in the dollar’s exchange rate is unlikely to be sustained, as remittance inflows are expected to pick up in the coming days.
