Dollar exchange rate continues to decline on weak global cues

US dollar exchange rate in Myanmar continues to drop.
US dollar exchange rate in Myanmar continues to drop.

The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate dropping to K1,360 per dollar on 6 March, tracking the weak sentiment in the global market amid the coronavirus outbreak, said money exchangers.
While the US dollar index touched 96 in the global market, the exchange rate slipped to K1,360 on 6 March and then continued to dip, reaching K1,355-1,370 on 8 March in the local forex market.
The US central bank has slashed interest rates in response to mounting concerns about the economic impact of the coronavirus. Following the news, the dollar exchange rate has fallen in the local forex market.
“At present, the dollar is falling in the market. The dollar rate is likely to remain cool and it seems it may not climb up,” said a money exchanger.
The dollar has depreciated even though the Central Bank of Myanmar (CBM) has purchased dollars from private banks to govern the market. On 6 March, the CBM had set the reference exchange rate (weighted average market rate) at K1,370.6 per dollar.
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.
With the Kyat gaining against the dollar in the internal forex market, the domestic gold price plunged to K1.215 million per tical (0.578 ounces, or 0.016 kilograms) on 5 March from a record high of K1.3 million in early September, 2019. — Ko Htet (Translated by Ei Myat Mon)

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