And so it is with the Taka against the US dollar exchange rate. Short-term versus long-termWhat happens to a financial market price in the immediate short-term is regarded as a random walk. The inflation factorThe foreign exchange market is by far the largest in the world. So it is with our foreign exchange rate, the price of money. In the long-term, exchange rates move according to the relative inflation rates.

Source: Dhaka Tribune March 17, 2018 17:15 UTC