Kyat gaining against US dollar in local forex

LOCAL NEWS

The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate touching a low of around K1,369.7 per dollar on 10 July, which is a slump of K51 from K1,420 registered on 1 May, money exchangers said.
The Central Bank of Myanmar (CBM) purchased over 30 million dollars from private banks in June to govern the market. It has purchased $19 million within a week. The domestic forex market witnessed the maximum rate of K1,410 in June. Despite the CBM’s dollar purchase, the dollar is currently pegged at around $1,360-1,370 in the domestic market. At present, the global forex market sees the weak sentiment amid the coronavirus outbreak, with the US dollar index of around 96.29. At present, exports of rice, corns and pulses are increasing, whereas the local forex market is facing low demand. The exporters are unhappy with the strengthening Kyat as the weakening dollar might harm export income and the stability of internal forex market, said a market observer. Additionally, people are reducing luxury import items and giving priority to food commodity due to the adversity of pandemic. 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. — Ko Htet (Translated by Ei Myat Mon)

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