The exchange rates ranged from Tk 121.47 to Tk 121.50 under the multiple price auction method. The cut-off rate was 121.50.
To tackle any sharp fall of the greenback against the local currency, the banking regulator purchased $484 million last month in two phases from several commercial banks through separate auctions — the first such move under the floating rate system.
Meanwhile, the purchased US dollars will be added to the foreign exchange reserves, according to BB officials.
As of August 8, forex reserves stood at $25.12 billion under the BPM6 calculation method of the International Monetary Fund, up from $20.48 billion a year earlier.
According to central bank officials, the regulator acted to prevent excessive volatility.
It wants to keep the forex market stable, because both a rise and a fall are not good indicators.
If the US dollar weakens too much, exporters and remitters feel discouraged and suffer losses.
Economists, however, criticised the central bank's move amid high inflation in Bangladesh, arguing that allowing the dollar rate to drop further could help contain inflation.
Bringing the rate down from Tk 120 to around Tk 110 could have made a remarkable difference in taming inflation.
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