Rupee slides to 6-week low, bond sales weigh

12 June 2013 03:03 am - 0 - {{hitsCtrl.values.hits}}

A A A

Sri Lanka's rupee hit a six-week low yesterday, weighed down by banks' demands for dollars to settle bond-related sales and importer buying of the U.S. currency, dealers said.

The rupee hit 127.20/30 per dollar in intraday trade on Tuesday, its lowest since April 26 and 0.53 percent weaker than Monday's close of 126.55/60, Thomson Reuters data showed.

Four dealers said the lowest deal was done at Rs.127.30. “We see some smalltime bondholders pulling back with the U.S. treasury yields moving upward,” one currency dealer said on condition of anonymity.

“They are also concerned over interest rates further coming down after the Central Bank’s comments.”

Dealers also said importers were buying dollars on concerns that the local currency may depreciate further.

The Central Bank governor, after holding key policy rates steady on Friday, said the monetary authority would issue guidelines to direct banks to cut lending rates and narrow the gap with the inflation rate.

The rupee is still 0.24 percent up so far this year, following a 10.7 percent depreciation in 2012 as the Central Bank allowed for a flexible exchange rate regime in February last year.

(REUTERS)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

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.

Rupee slides to 6-week low, bond sales weigh

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Racing event tragedy leaves seven dead including eight-year-old child

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

Ranil Wickremesinghe caravan moves on despite barking dogs

Two racing drivers arrested over Fox Hill tragedy

Man who jumped off Sri Pada Uda Maluwa and went missing, found

SL on alert on possible genocide allegations by Canada

MIRROR CRICKET

TODAY'S HEADLINES