Home / Financial Services/ Rupee ends steady after 6 sessions of decline

Rupee ends steady after 6 sessions of decline


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 11 July 2018 00:00


Reuters: The rupee closed steady on Tuesday after six straight sessions of decline, as importer dollar demand offset mild exporter dollar sales, traders said.

The rupee closed flat at 159.25/35 per dollar. It has declined 3.8% so far this year.

“We think the rupee will hold at this level for the moment. We haven’t seen much volatility in the last three sessions,” a currency dealer said.

The Central Bank left its key rates unchanged as expected on Friday, saying a low rates environment and stabilising inflation would support its economy in the face of a fragile currency.

Central Bank Governor Indrajit Coomaraswamy said the depreciation was mainly driven by external factors and that emerging-market currencies were under pressure.

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

Currency dealers said the rupee was weakening gradually after a brief recovery.

Dealers said the downward pressure on emerging market currencies was due to the hike in US rates, trade tensions between China and the United States, and rising oil prices. The spot rupee hit an all-time low of 160.17 per dollar on 20 June.

A strengthening dollar since mid-April has increased the credit risk of several emerging markets, including Sri Lanka, due to currency depreciation, ratings agency Moody’s said late last month.

Foreign investors sold government securities worth a net Rs. 674 million ($ 4.24 million) in the week ended 4 July, bringing the outflows so far this year to Rs. 29.6 billion ($ 185.9 million), Central Bank data showed.


Share This Article


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


Columnists More