US dollar exchange rate on downward trend

Dollar
US Dollar drops against Myanmar Kyat in past two weeks.  Photo: Phoe Khwar

By Nyein Nyein

The US dollar exchange rate keeps falling in the local forex market, showing a drop of K30 over the two weeks. In the third week of September, the exchange rate dropped a two-week low of K1,320 which slumped from the price of above K1,350 in the first week of September. On 17 September, the US dollar exchange rate was opened at K1,321 in the forex market.
“The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters. That is why the stable exchange rate is vital of importance for the businesses,” the businesspersons said. At present, the local forex market sees the weak sentiment amid the coronavirus outbreak and the trade disputes between the US and China, the business experts shared their opinions. “It will negatively affect the exporters if the exchange rate slips. The downward trend in Kyat-Dollar exchange rate and Kyat-Yuan exchange rate hurt the exporters to a large extent. In general, the appreciation of the domestic currency hampers exports,” said Vice-Chair U Min Thein of Muse Rice Depot. He highlighted that the drop in the exchange rate is attributed to the US-China tensions and coronavirus resurgences. This year, the rate is remained on the low side.
However, the depreciation of the US dollar against Kyat stimulates the importers of oil and pharmaceuticals as it makes the imports cheaper, businesspeople said. This year, the exchange rate moves in the range of K1,456-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July and K1,335-1,390 in August. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. (Translated by Ei Myat Mon)

 

Share this post

Comments

Hot News
Hot News