BBN file photo

Dhaka, Bangladesh (BBN) – The exchange rate of Bangladesh Taka (BDT) depreciated slightly against the US dollar (USD) on Tuesday, despite the central bank’s support with foreign currency to the commercial banks.

The local currency depreciated by three paisa in the inter-bank foreign exchange market on the day mainly due to higher demand for the greenback, market operators said.

The US dollar was quoted at BDT 83.88 each in the inter-bank foreign exchange market on the day against BDT 83.85 of the previous working day.

It was first depreciation of the local currency this month.

In October 2018, the BDT depreciated by seven paisa in the inter-bank foreign exchange market on the same ground.

The exchange of US dollar rose to BDT 83.85 each on October 30 in the inter-bank forex market from $83.78 on October 01, according to the Bangladesh Bank (BB) data.

Meanwhile, the central bank of Bangladesh has strengthened providing foreign currency support to the banks for settling the import payment obligations, particularly of fuel oil and capital machinery.

As part of the move, the central bank sold US$50 million more directly to four banks on the day aiming to keep the market stable.

“We may continue providing such forex support to the banks in line with the market requirement,” a BB senior official hinted.

A total of $550 million has been sold to the commercial banks since July 01 during the current fiscal year, as part of its ongoing support, the BB data showed.

The demand for the US dollar is increasing gradually, mainly due to higher import payment pressure, particularly for the petroleum products and capital machinery, according to the market operators.

The BDT may depreciate further against the US currency shortly mainly due to higher demand for the US dollar in the market to settle import payment obligations particularly for fuel oil, they added.