The US dollar in Bangladesh saw a marginal increase against the taka on Tuesday as banks faced growing pressure to settle letters of credit (LCs) for oil and gas imports. Eastern Bank PLC quoted the dollar at Tk 123.98 for spot selling and Tk 122.98 for spot buying, slightly higher than the previous day’s rates of Tk 123.95 and Tk 122.95, respectively. State-owned Sonali Bank listed the dollar at Tk 123.90 for spot selling, with spot buying rates varying between Tk 122.63 and Tk 122.90.

Data from Bangladesh Bank showed the weighted average interbank dollar rate increased to Tk 123.75 on Tuesday from Tk 123.73 a day earlier and Tk 123.45 a week prior. Banking sources attributed the uptick primarily to mounting payment demands related to oil and gas imports. A treasury official at a state-owned lender, requesting anonymity, confirmed that government expenditures on energy imports were exerting considerable pressure on the currency market, noting that his institution was also dealing with a mild shortage of dollars.

Import payments for the two months of July and August in the current fiscal year rose 12 percent year-on-year to $12.20 billion, with payments for petroleum products alone doubling to $2.49 billion, according to Bangladesh Bank figures. Industry experts cited rising global fuel prices, driven in part by ongoing tensions in the Middle East, as a key factor behind the increased import bill.

A Bangladesh Bank official explained that despite roughly balanced dollar inflows and outflows, payment pressures typically intensify toward the end of the month, leading to a higher exchange rate. The official also noted that remittance inflows tend to slow during this period, causing a temporary mismatch in supply and demand for foreign currency.

Data showed that expatriate Bangladeshis sent $2.13 billion to the country between October 1 and 24, a rise from $2 billion over the same period last year. The central bank official reiterated that while the overall currency flow remains stable, cyclical end-of-month pressures continue to influence exchange rate fluctuations.