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Friday, May 20, 2016, Jaistha 6, 1423 BS, Shaban 12, 1437 Hijri

Forex Market Update
US dollar soars against most emerging market currencies
Observer Analysis
Published :Friday, 20 May, 2016,  Time : 12:00 AM  View Count : 18

The US dollar remained stable at Tk 78. 40 against the Bangladesh taka in interbank trade Thursday, ahead of two-day weekend holiday due to central bank intervention when it soared against emerging market currencies in global markets, dealers said.
Bangladesh Bank sold a substantial amount of US dollar to arrest its upward trends when the dollar soared in global markets as investors sought safety after minutes showed the Federal Reserve was more likely to raise interest rates than previously believed, central bank officials said.
The South Korean won, the Philippine peso, Thailand's baht and the Taiwan dollar declined against the US unit while the dollar ticked lower to 110.14 yen from 110.20 yen Wednesday and the euro edged down to $1.1213 and 123.59 yen from $1.1218 and 123.62, dealers said.
On Wednesday, the dollar touched a seven-week high against major currencies on Wednesday after the Federal Reserve signaled an interest rate rise could happen as soon as June, while stocks on Wall Street were buoyed by the resulting rally in bank shares.
Market analysts say the dollar traders moved back into the US currency after the minutes to the Fed's April meeting suggested on Wednesday that a US interest rate hike in June was increasingly likely.
The move saw most higher yielding, or riskier, emerging units take a belting against the dollar, with the Indonesian rupiah off more than one percent and the oil-reliant Malaysian ringgit tumbling 0.9 per cent.
Markets are now eyeing a meeting between finance ministers and central bankers from the Group of Seven countries starting Friday in northern Japan for fresh trading cues. US President Barack Obama and other G7 leaders are attending a summit in Japan next week.

Editor : Iqbal Sobhan Chowdhury
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