Thu, 11 Aug 2022 Today's Paper

Rupee flat; CB Governor’s comments weigh

5 January 2017 08:51 am - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: The Sri Lankan rupee ended steady in thin trade yesterday amid worries over slowing foreign fund inflows and after the Central Bank chief signalled a change in the monetary authority’s intervention policy to defend the currency.
Central Bank Governor Indrajit Coomaraswamy said after the markets closed on Tuesday that defending the rupee with foreign exchange reserves “doesn’t seem sensible” as it has always been followed by a sharp depreciation in the currency.
Rupee forwards were active, with one-month forwards ending at 150.90/10 per dollar, compared with Tuesday’s close of 151.00/20.
One-week forwards were quoted around 150.20/30 compared with Tuesday’s close of 150.25/35, while spot-next forwards and the spot rupee were hardly traded, dealers said.
“We saw some demand in the morning but it has eased. There were some state bank dollar sales too,” said a currency dealer who declined to be named.
“The Central Bank governor’s statement makes sense. It is more sensible to allow market players to determine it.”
The Central Bank said in a policy document on Tuesday that experience had clearly demonstrated that maintaining “an overvalued exchange rate at the expense of external reserves” is unsustainable.
A smooth market-based exchange rate would prevent highly disruptive adjustments after periods of stable rates artificially maintained by continuous Central Bank intervention.
“It is time to stop this pattern and commence building up of external reserves through sustainable foreign exchange inflows,” the governor said, quoting from the document.
The rupee has been under pressure due to rising imports and net selling of government securities by foreign investors, dealers said.
On Friday, the Central Bank raised the spot currency reference rate to 150.00, a record low against the dollar.
The banking regulator raised the spot reference rate by 50 cents last week, after a 40-cent increase in each of the previous two weeks amid sustained pressure on the currency. 

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

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

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

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


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




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

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Govt. re-recommends COVID-19 regulations: Medics, legal experts warn of vaccine expiry dates and injuries

The public has once again been advised to wear masks to prevent the spread of

8-year-old grave sexual abuse victim gets justice after 18 years

In Palawela Udaniriella, an 8-year-old girl became the victim of Grave Sexual

Covid makes a comeback!

These questions have been buzzing in our heads over the past few weeks as hea

Gas shortage could have been averted – Litro Chairman

A serious shortage of fuel, gas and other essential items as a result of the