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November 12, 2019

US dollar exchange rate slides on low demand

The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate touching a low of K1,513 per dollar on 6 November, a decline of about K17 from October-end, said money exchangers.

A clerk checks US 100 dollar bank notes at a foreign currency exchange counter in Yangon.  Photo: Xinhua

At the end of October, the rate was pegged at K1,530. While the US dollar index was around 97 in the global market, the exchange rate slipped to K1,523 on 2 November and K1,516 on 4 November in the local forex market.
“It is normal for the dollar to depreciate against the Kyat in November. At present, exports of rice and pulses are increasing, and the demand for the dollar is falling in the holidays. The dollar rate is likely to remain cool and it seems it may not climb up,” said a money exchanger.
The Central Bank of Myanmar (CBM) buys dollars from private banks to govern the market. The CBM set the reference exchange rate (weighted average market rate) at K1,516.9 per dollar on 4 November.
In October last year, the dollar exchange rate had hit a high of K1,600. Thereafter, the dollar has been falling in the local currency market.
This year, the exchange rate stood at K1,540 on 1 January and fell to a low of K1,515 on 15 January. It continued to drop and reached K1,503 on 28 February. Thereafter, it rose to K1,527 on 18 March and K1,538 on 14 May. The rate stood at K1,259 on 1 June and 1,514 on 26 August. Then, the dollar exchange rate hit a peak of K1,565 on 6 September. —Ko Htet
(Translated by Ei Myat Mon)

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