The US dollar exchange rate bounced back to K1,420 on 13 March, propped up by the Central Bank of Myanmar’s dollar purchase on 10 March. The exchange rate experienced volatility during the three-day period, moving up K100 post the central bank’s move.
On 10 March, the Central Bank of Myanmar purchased $9 million from private banks, helping the dollar exchange rate to climb above K1,400 on 12 March and touch K1,420 on 13 March, according to the local forex market.
In recent days, the US dollar weakened against the Kyat in the local currency market, 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 in the local forex market on 6 March and then continued to dip, reaching K1,355-1,320 on 9 March. The dollar gained after the CBM purchased dollars from private banks to govern the market. On 13 March, the CBM had set the reference exchange rate (weighted average market rate) at K1,398.6 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.
This year, the exchange rate moved in the range of K1,465-1,493 in January, and fell to a low of K1,436-1,465 in February.
On account of the slight gain in the dollar in the internal forex market, the domestic gold price climbed back to K1.2 million per tical (0.578 ounces, or 0.016 kilograms) on 12 March. The price had reached a record high of K1.3 million in early September, 2019. However, the rate dipped to K1.192 million per tical in the afternoon on 13 March.—Ko Htet (Translated by Ei Myat Mon)