The country’s foreign exchange market on Wednesday continued to exhibit a pattern of moderate fluctuations, reflecting ongoing volatility in global currency markets. Persistent international uncertainty, particularly linked to tensions in the Middle East, alongside broader macroeconomic instability, has continued to influence domestic currency dynamics. As a result, exchange rates have remained unstable over recent days, with a mild upward bias observed in the overall valuation of major foreign currencies.

According to the latest data released by the central bank, the average exchange rate of the US dollar stood at 122.75 taka. The dollar has been experiencing continuous movement over the past several months, although the past month has shown only a marginal upward shift. Economists attribute this pressure primarily to rising import obligations, external debt servicing requirements, and sustained global demand for the US currency.

Market data from today indicates a general decline in the value of several major foreign currencies against the local currency. The euro, British pound, Australian dollar, Singapore dollar, and Chinese yuan all recorded marginal decreases. In contrast, certain currencies remained unchanged, most notably the Indian rupee and the Japanese yen, suggesting a degree of short-term stability in select bilateral exchange relationships. Notably, no currency registered an appreciation against the local currency during the day’s trading, indicating a temporary equilibrium in market sentiment.

In the informal open market, foreign currencies typically trade at slightly higher rates compared with officially published central bank figures. This gap is largely driven by fluctuations in supply and demand, remittance inflows, import dependency, and transactions occurring outside formal banking channels. Such structural factors continue to exert pressure on exchange rate differentials.

Foreign exchange movements play a crucial role in shaping the country’s trade and economic environment. A stronger US dollar increases import costs, which can subsequently influence consumer prices and inflationary trends. Conversely, a higher dollar rate can benefit exporters by improving foreign currency earnings, although it also introduces broader macroeconomic balancing challenges.

The following table summarises today’s exchange rate movements:

Overall, the foreign exchange market remains in a sensitive phase, shaped by both external economic conditions and internal demand pressures. Market participants and analysts suggest that future movements in exchange rates will largely depend on developments in global financial stability, import demand patterns, and foreign currency inflows in the coming weeks.