Home / Financial Services/ Rupee ends marginally weaker on importer dollar demand

Rupee ends marginally weaker on importer dollar demand


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 25 July 2018 00:00

Facebook

Reuters: The rupee ended marginally weaker on Tuesday as importer dollar demand surpassed selling of the greenback by exporters, traders said.

The rupee closed at 159.50/60 per dollar, compared with Monday’s 159.45/65. It has declined 3.9 percent so far this year and had hit a record low of 160.17 on 20 June.

“The demand (for dollars) was there today ... we have seen some oil-related demand,” said a currency dealer asking not to be named.

Dealers said the news of Chinese grant of 300 million dollars helped to ease the pressure on the currency.

Chinese President Xi Jinping has offered Sri Lanka a fresh grant of 2 billion yuan ($ 295 million), as Beijing looks to expand its influence in the tiny island country off India’s southern tip.

Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy had said earlier that the rupee’s decline was driven mainly by factors outside of Sri Lanka and that emerging-market currencies were under pressure.

The Central Bank is concerned that dollar hoarding and market manipulation are exacerbating the rupee’s weakness and has the tools to correct any misalignment in the exchange rate, Coomaraswamy told Reuters.

The International Monetary Fund said last month that Sri Lanka’s economy remained vulnerable to adverse shocks due to a sizeable public debt and large refinancing needs.

Foreign investors sold government securities worth a net Rs. 1.98 billion ($ 12.4 million) in the week ended 18 July, bringing the outflows so far this year to Rs. 31.6 billion, Central Bank data showed.

 


Share This Article

Facebook Twitter


DISCLAIMER:

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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

COMMENTS

Today's Columnists

Revitalising the tourist inflows

Wednesday, 22 May 2019

Easter Sunday 21 April terror acts have dealt a very heavy blow on tourism. The inflow has dried up for the moment while it can be presumed that forward selling too may have become sluggish. It is noted that Government has introduced a series of meas


Truth has now arrived, and falsehood has perished

Wednesday, 22 May 2019

“And say: Truth has now arrived, and Falsehood has perished: for Falsehood by its very own nature is bound to perish.” Holy Quran: Chapter 17 Verse 81. Every discussion, debate and discourse that we see and hear over the audio – visual and prin


Afghan refugees face Jaffna’s hostility: These Sri Lankans are crazy

Wednesday, 22 May 2019

Abbas Ahmadi, an IT specialist, was rather high in the Afghan provincial civil service. He is of Hazara ethnicity and persecuted by the majority Pashtuns who ironically dominate the ruling faction as well as the rebelling Taliban.The Hazaras are inpa


One month gone: No charge on over 200 Catholics murdered

Wednesday, 22 May 2019

It’s been one month since the murder of around 300 innocent Catholic children and parents but no has yet been charged for the biggest negligence of duty that Sri Lanka has seen in recent history. The President and Prime Minister have both denied a


Columnists More