Dhaka, May 10 -- The US dollar price surged in the kerb market on Thursday, reaching Tk 125, just a day after the Bangladesh Bank implemented a crawling peg exchange rate system. This follows the central bank's decision on Wednesday to devalue the taka by Tk 7, setting the Crawling Peg Mid-Rate (CPMR) at Tk 117 per US dollar.

Market participants attributed the price hike to increased demand for US dollars amid concerns about potential further devaluation.

"People have increased their purchase of the American greenback because of a possible price hike in future," said market insiders.

Open market dollar trader Sumon Ahmed echoed this sentiment, stating, "The dollar market has heated up. There is acute shortage of dollar. Everyone wants ...