Nervous financial markets propelled the safe-haven dollar to a two-decade peak on Wednesday as rising global interest rates fed recession worries, while sterling drifted lower after the latest warnings about Britain's radical tax cut plans.

Banks today refixed the rate at which they would buy US dollars coming in through foreign exchange houses in the form of remittance.

The dollar lingered near a two-decade top on major peers on Monday, ahead of a week loaded with market holidays and central bank decisions from Washington to London and Tokyo.

Banks yesterday fixed the buying and selling rates of the US dollar in order to contain the volatility in the foreign exchange market resulting from higher imports than export and remittances earnings. 

After the latest fuel price hike, Bangladesh Petroleum Corporation will make a profit of Tk 205 crore per month, provided that the dollar price continues at the rate of July.

The exchange rate of the US dollar jumped to Tk 119 in the kerb market in Bangladesh today.

The safe-haven dollar edged higher on Tuesday, erasing earlier losses as risk appetite dwindled ahead of key inflation figures that could offer clues on how aggressive the Federal Reserve will be in its expected interest rate hike in September.