With low supply and high demand for dollars, the price of the greenback in the open market has jumped to Tk112 on Tuesday. 

The Bangladesh Bank on Monday devalued taka against the dollar for the third time in a month by Tk0.25 as the greenback continued to gain momentum in the foreign exchange (forex) market.

The new interbank exchange rate was set at Tk94.70 per dollar on the day, raising the rate from the previous Tk94.45.

The central bank said it sold $132 million to banks at the new rate. 

Since 1 July of the current fiscal year, more than $700 million has been sold from the reserve.

Earlier on Thursday, the central bank depreciated taka by Tk0.50 to Tk94.45 against the dollar. 

The dollar price was increased again in a span of one working day.

The central bank says the value of taka is being reduced in order to adjust it to the actual value of the dollar. 

It is providing dollar support to banks for settling import bills of daily necessities such as fuel, electricity and food products as well as government purchases.

In the last one and a half months, taka has lost value by Tk5.70, according to data from the Bangladesh Bank.

At the beginning of June, the interbank exchange rate was Tk89 per dollar.   

Despite faster devaluation, the dollar rate in the market is still very high forcing banks to settle LC (Letter of Credit) payments at a maximum of Tk104 per dollar on Monday.

Contacted, a top executive at a private bank said that most banks settled LCs at over Tk102 but LC value over $0.5 million was settled at Tk104.

The dollar price in the kerb market hovered between Tk106 and Tk107 on the day, according to bankers.

The price of the dollar in the kerb market has risen to an all-time high of Tk106. 

Besides, money changers bought dollars at Tk105-105.50. The previous day, on Sunday, the dollar price rose to Tk105. 

This was the highest dollar price in the kerb market until Monday. The dollar made a new record in the kerb market within a day.