Home / Financial Services/ Rupee edges down on importer dollar demand

Rupee edges down on importer dollar demand

Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 8 August 2018 00:00


Reuters: The rupee ended marginally weaker on Tuesday as demand for the US dollar from foreign banks surpassed mild inward remittances, traders said.

The rupee ended at 159.75/85 per dollar, compared with Monday’s close of 159.70/80. It hit a record low of 160.17 on 20 June and has declined 4.1% so far this year.

“Today, some foreign banks were on the buying side. There was not much of remittances today,” said a currency dealer, asking not to be named.

“The currency is under pressure, like its regional peers, but the central bank would not like to see the rupee trading above 160.00 per dollar.”

On Friday, the Central Bank left its key policy rates unchanged saying the decision backed its goals for stabilising inflation and fostering sustainable economic growth.

Central Bank Governor Indrajit Coomaraswamy told reporters that several emerging market currencies had depreciated over 4%, more than the rupee, adding “if we reduce rates that would put further pressure on the exchange rate.”

Sri Lanka last week raised import duties on small hybrid cars by more than 50% to boost revenue and curb a sharp fall in the rupee.

The finance ministry imposed a minimum duty of Rs. 1.25 million on any hybrid car with an engine capacity of less than 1,000 cubic centimetres to discourage imports which have put pressure on the rupee.

Coomaraswamy had said earlier that the rupee’s decline was driven mainly by factors outside Sri Lanka.

Foreign investors sold government securities worth a net Rs. 259.7 million ($ 1.63 million) in the week ended 1 August, bringing the outflow so far this year to Rs. 36.5 billion, Central Bank data showed.

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

17 things ‘Avengers: Endgame’ teaches us about the state of our superheroes

Friday, 24 May 2019

Art imitates life. Even movies do. Maybe especially so. In these lean times, there’s nothing like a little laughter to stop the press, stem the blood pressure, ease that stress in life. So here goes. Trust you’ll take these tongue-in-cheek. Or pe

Sri Lanka needs urgent surgery!

Friday, 24 May 2019

Sri Lanka was on the slippery slope of a serious crisis, heading for a great disaster of the State, even before the outbreak of Easter Sunday attacks. Now, in the aftermath of the ruthless Easter Sunday attacks, the country’s crisis has become exac

Who built the Matara/Beliatta railway line?

Friday, 24 May 2019

In 2019, after 70 long years of independence, Sri Lanka succeeded in adding to the rail network left behind by the British when we extended the southern line from Matara to Beliatta, a distance of less than 20 miles. While the network left in place b

Occupational prestige further propagates a divisive society

Friday, 24 May 2019

Occupational prestige is regarded by society as an individual’s social standing based on the occupational position in the hierarchical social structure of an aggregate of occupations. Accordingly, the general public perceive certain occupations hig

Columnists More