The US dollar appreciated slightly against the Bangladeshi taka on Wednesday, the fourth working day of the week, amid ongoing volatility in foreign exchange rates driven by factors including the Middle East crisis. According to data published by Bangladesh Bank, the average dollar rate stood at Tk124.65 in the market.

Exchange rate movements

The central bank's latest figures show that most major currencies declined in value, including the euro, British pound, Australian dollar and Singapore dollar. The Indian rupee and Japanese yen remained unchanged, while the Chinese yuan was the only currency to gain ground.

Fuel imports and LC settlements

The dollar rate has risen by more than Tk2.30 in three months as fuel import payments increased, according to a Business Standard report. During this period, letters of credit (LCs) were settled at Tk124.90-124.97 per dollar through banks.

Open market and trade impact

The dollar is sold at slightly higher rates in the open market compared to the central bank's published exchange rates. Fluctuations in foreign currency exchange rates directly affect the cost of trade and commerce in the country, according to sources.