The US dollar continued to gain against the Bangladesh taka last week on stronger demand from importers who are under pressure to pay their outstanding bills mostly in the form of US dollar. Against most major currencies, the dollar also extended gains as the euro was largely weighed down by concerns over potential economic growth slowdown in the euro zone. Analysts said oil prices on Friday slumped to the lowest level in more than a year, with US crude settling at a new low of $50.42 a barrel for nearly two months which spurred more risk aversion among investors, adding value to the dollar as a safe-haven currency.
Bangladesh Bank officials said the dollar closed at Tk 83.90 per unit in interbank trade last week ending Thursday compared to the previous week's closing at Tk 83.88. The euro traded at Tk 95.5369 and the pound sterling at Tk 107.2242. The demand for American currency remained stronger as importers were under pressure to settle their import payments ahead of the newyear when many dealers fear that the political environment might be heated up soon and disrupt export earnings.
Meanwhile, the euro dropped to $1.1329 from $1.1405 in late New York trading on Friday, the British pound dropped to $1.2808 and the Australian dollar was down to $0.7226, according to. Analysts say the pound has been placed on the defensive against the US dollar as Spain threatens to "stop the clock" on Brexit negotiations, unnerving some pound investor. The Spanish government has accused the UK of "treachery" acting "under the cover of darkness" as Madrid voices its opposition to parts of the text in the political declaration on post-Brexit relations that covers the future of Gibraltar.
The US dollar bought 112.88 Japanese yen, lower than 112.95 Japanese yen of the previous session. The US dollar rose to 0.9974 Swiss franc from 0.9943 Swiss franc, and it was up to 1.3230 Canadian dollars from 1.3195 Canadian dollars. Purchasing Managers Index surveys of German and the euro zone appeared weaker than expected, dragging down the euro, according to Reuters. Analysts said the downbeat data would raise doubts over whether the European economy would rebound for the remainder of the year. According to Bloomberg, the US Dollar's run up the charts in 2018 may draw to a close as crude oil prices threaten to continue plunging.
