The US dollar reached Tk 123 in Bangladesh's inter-bank foreign exchange market, marking a significant depreciation of the local currency.
The move reflects a widening gap between strong domestic demand for foreign currency and slower-than-expected inflows from remittances and export earnings.
This development follows a period of heightened pressure on local banks, which have been rushing to settle outstanding letters of credit ahead of the June quarter-close.
The recent strengthening of the dollar against the taka was initially driven by these settlement needs, but the latest level suggests underlying structural imbalances in the current account are persisting.
The dollar's broader global rally has also contributed to the pressure on emerging market currencies.
The greenback recently climbed to a 13-month high against a basket of major currencies, fueled by investors seeking safe-haven assets amid global economic uncertainty.