Bangladesh taka (BDT) has appreciated marginally by 0.03 per cent against the US dollar as the inflow of foreign currency increased in the market.
The US dollar was quoted at Tk 68.48 -Tk 68.53 in the inter-bank foreign exchange market Sunday against Tk 68.50 -Tk 68.53 of the previous working day, officials said.
"The local currency had slightly appreciated earlier against the US dollar nearly one month back mainly due to increase in the inflow of foreign currency in the market," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the exchange rate of the US dollar may increase shortly as the payment for imports is expected to go up by the end of this month.
A few commercial banks were compelled to sell foreign exchange on the day to maintain their 'net open position (NOP)' within the required limit, market operators said.
"We had to sell our surplus dollar in the market on the day to keep the NOP in line with the BB's limit," a senior treasury official of a commercial private bank told the FE.
He also said the demand of the greenback will increase from next week when there will be a fresh pressure on the forex market for footing import bills.
Over the last two weeks, the inflow of foreign exchange witnessed a rise but the import payments pressure was low because of the start of the new fiscal, they added.
On Tuesday last, the central bank bought US$9.50 million from the commercial banks at a rate of Tk 68.50 aiming to keep the country's forex market stable.
The BB took the move to keep the rate of the local currency stable against the greenback, which is essential for ensuring the inflow of remittances and export earnings.
In December last, the central bank also purchased at least $37 million from the commercial banks as part of its intervention.
On the other hand, the BB started intervention in the market by selling the US currency directly to authorised dealers from October 29 last year aiming to keep the market stable.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.
