Dollar exchange rate dips to K1,500 on strong export market

The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate touching a low of K1,500 per dollar on 5 December, a decline of about K30 compared with October-end, said money exchangers.

At the end of October, the rate was pegged at K1,530. While the US dollar index was above 97 in the global market, the exchange rate slipped to K1,503 on 4 December and K1,500 on 5 December in the local forex market.

“It is normal for the dollar to depreciate against the Kyat this time of the year. At present, exports of rice and pulses are increasing, and the demand for 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 been buying about 3 million dollars per day from private banks to govern the market since 27 November. The CBM had set the reference exchange rate (weighted average market rate) at K1,500.7 per dollar on 5 December.

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, domestic gold price plunged to K1.185 million per tical (0.578 ounces, or 0.016 kilograms) on 5 December from a record high of K1.3 million in early September.

This year, the exchange rate stood at K1,540 on 1 January and fell to a low of K1,515 on 15 January. It continued to drop and reached K1,503 on 28 February. Thereafter, it rose to K1,527 on 18 March and K1,538 on 14 May. The rate stood at K1,259 on 1 June and K1,514 on 26 August. Then, the dollar exchange rate hit a peak of K1,565 on 6 September. It was pegged at around K1,528-1,537 in October. Last month, the rate moved in the range of K1,510-1,524. —Ko Htet (Translated by Ei Myat Mon)