Reply To:
Name - Reply Comment
Last Updated : 2024-04-26 22:10:00
REUTERS: The Sri Lankan rupee ended slightly weaker yesterday as importer dollar demand outpaced mild greenback sales by exporters, while the market expects the downward pressure to continue until some steady foreign inflows come in, dealers said.
Rupee forwards were active, with two-week forwards ended at 150.95/151.05 per dollar after it traded at 151.10/20 in early trade, compared with Monday’s close of 150.90/151.10.
However, the dollar steadied yesterday, recovering from a dip on fears that U.S. President Donald Trump’s focus on protectionism over fiscal stimulus suggested his administration might be content to gain a competitive advantage through a
weaker currency.
The spot rupee was quoted around the Central Bank’s reference level of 150.15, dealers said.
“This downward pressure will persist until we see steady inflows,” a currency dealer said, asking not to
be named.
Dealers also said exports could be hurt as severe drought conditions hit production of tea and other commodities.
The rupee has been under pressure due to rising imports, net selling of government securities by foreign investors and a Central Bank decision to adjust the spot rupee reference rate to a record low of 150.15 rupees to the dollar.
Central Bank officials were not immediately available for comment.
Sri Lanka’s Central Bank sold $458 million worth of development bonds on Thursday and investors say they expect the move will take ease the pressure on
the rupee.
Foreign investors have net sold Rs.19.8 billion ($132.00 million) worth government securities in the two weeks ended Jan. 18, according to the latest Central Bank data.
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
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul
4 hours ago
6 hours ago