Rupee ends little changed

28 March 2017 12:01 am - 0     - {{hitsCtrl.values.hits}}


REUTERS: The Sri Lankan rupee closed largely unchanged yesterday as importer dollar demand almost offset the inward remittances after the country’s Central Bank raised benchmark interest rates by 25 basis points.
The Central Bank raised the spot rupee reference rate by 10 cents to 151.70 yesterday after the bank raised it by 25 cents on March 20.
On Friday, the Central Bank raised interest rates for the first time in eight months, saying tighter policy was a precaution against a build-up of inflationary pressures.
Analysts said the rate hike, a move aimed at easing pressure on the rupee, could help stabilise the domestic currency that is hurt by rising imports and outflows due to rupee bond sales by foreign investors.
Rupee forwards were active, with two-week forwards ending at 152.65/75 per dollar, compared with Friday’s close of 152.60/70.
“The demand (for dollars) was there and in fact the central bank also raised the reference rate today,” said a currency dealer, asking not to be named.
Foreign investors net bought government securities worth Rs.70 million in the week ended March 22. They have net sold Rs.63.2 billion of such instruments so far this year. 

  Comments - 0

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment

Public transport 'side-laned'?

“Miss, mantheeru neethiya nisa api bus passen yanna one. Ithin drop eka par

Land acquisitions in Hanthana and Knuckles Mountain ranges

Sri Lankans will soon lose their opportunity to boast about the rich biodiver

Wanathawilluwa forest clearance: Whodunit?

Days after the Anawilundawa Ramsar Wetland, situated in Puttalam District, ma

‘I’m scared to see her face’

On August 13, a woman happened to meet a child who was in desperate need of h