The price of the US dollar continued to rise on Sunday, reaching a record Tk105 in the open market, but it fell to Tk104 in the afternoon, according to officials of several money changers.
The greenback was traded at the rate of Tk102 on Saturday in the kerb market.
According to market insiders, the rise has been linked to the surging demand for dollars compared to its supply in the open market.
Money exchanges in Paltan, Motijheel and Baitul Mokarram areas reported that they had bought dollars at a rate of Tk103-104 on Sunday.
Murad Hasan, owner of Dohar Money Changer in Motijheel, told The Business Standard, "We were not able to provide enough dollars to buyers. This is a crisis in the market and we are a part of it."
Md Nazrul Islam, owner of Ismail Money Exchange in the Baitul Mokaram area, said, "The price of the dollar fluctuated a lot on Sunday. In the morning, I sold dollars at Tk102 and the price suddenly rose to Tk105 at noon. However, in the afternoon, the price fell to Tk104."
Meanwhile, the rate of other currencies also increased on Sunday.
Saudi Riyal was sold at Tk27.50 in the kerb market. Besides, the Indian rupee was sold at Tk1.30, which was Tk1.25 a week ago.
An official of a money exchange house in Paltan told TBS, "A balance between the demand and supply of dollars is needed. Currently, we are facing a supply crunch. Besides, due to the price hike, sales have decreased slightly. Usually, customers come to us after being unable to buy dollars from the bank."
On 17 May, the dollar price rose to Tk103-104 in the kerb market but fell below Tk100 the next day. Then the price fluctuated between Tk96 and Tk98 for several days.
On 30 June, the dollar price crossed Tk100 in the kerb market. The price oscillated in the middle of this month. On Thursday (21 July), the dollar traded at the rate of Tk102.50.
Banks settle LCs at Tk102 per dollar
Dollar prices in banks have an effect on the prices in the kerb market. Banks on Sunday settled import Letters of Credit (LCs) at Tk101.5-102 per dollar.
The commercial banks collected remittances from the exchange houses at the rate of Tk102. Apart from this, they encashed Export Payment at Tk100-101.