Dollar Rises to Tk122.40 Amid Higher Market Demand

US dollar, euro and Ukrainian hryvnia banknotes are seen in this picture illustration created in Kyiv, Ukraine, October 31, 2016.

The exchange rate of the US dollar rose by Tk0.33 in a single day to reach Tk122.40 on Wednesday (23 October), according to Bangladesh Bank data.

On Tuesday, the interbank exchange rate stood at Tk122.06, marking a 56-poisha increase over the past week. The rate was Tk121.95 on Tuesday, Tk121.90 on Monday, Tk121.87 on Sunday, and Tk121.84 on last Thursday (16 October).

A treasury head at a private bank said the recent rise resulted mainly from the Bangladesh Bank’s dollar purchases from commercial banks through auctions.

“During these auctions, banks sold dollars to the central bank, but ongoing import payments and lower remittance inflows towards the end of October have slightly raised demand, pushing the rate higher,” the official explained.

The official further noted that the Tk121.80 auction rate has sent a clear signal that the dollar should trade above this level.

Since July, the central bank has bought over $2 billion from commercial banks to prevent a drop in the dollar rate.

Meanwhile, Letter of Credit (LC) openings in September reached $6.3 billion — a 17.29% increase from August’s $5.38 billion, according to Bangladesh Bank’s monthly economic indicators report.

Although this rise indicates a recovery in import activity after eight months, the figure still remains below the $6.84 billion recorded in January 2025.