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

Rupee ends weaker on importer dollar demand

Comments / {{hitsCtrl.values.hits}} Views / Friday, 3 August 2018 00:00


Reuters: The rupee ended marginally weaker on Thursday as late dollar demand from foreign banks surpassed greenback sales, traders said.

The rupee, which traded at Rs. 159.80 per dollar during the day, ended weaker at 159.75/85 per dollar compared with Wednesday’s close of 159.55/65. It has fallen 4.04% so far this year, and hit a record low of 160.17 on 20 June.

“Today, in the latter part of the day, we have seen some demand coming from a foreign bank. There were remittance flows but the demand was there at the latter part of the day,” said a currency dealer, asking not to be named.

Sri Lanka has raised import duties on small hybrid cars by more than 50%, the Government said on Wednesday, aiming 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 the imports which has pressurised the rupee currency.

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

Foreign investors sold government securities worth a net Rs. 4.6 billion ($ 28.83 million) in the week ended 25 July, bringing the outflow so far this year to Rs. 36.2 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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Religion is a problem in Sri Lanka; can it be a solution?

Saturday, 17 August 2019

Generally, it is expected that religion should be a solution to a problem. Ironically in Sri Lanka religion is the problem. Therefore, what would be the solution? When religion becomes a problem of a country....

Orthodoxy and change: A perennial Muslim issue

Saturday, 17 August 2019

Whether Muslims live as minorities in non-Muslim countries or as majorities in a total of fifty seven countries, the clash of orthodoxy with modern challenges is a perennial issue that bedevils progress on several fronts in these communities.

Making the MCC Compact work for Sri Lanka

Friday, 16 August 2019

It is a sign of these political times that even an apolitical issue like a foreign aid program becomes a hot topic in Sri Lanka. In April 2019, the Board of Directors of the Millennium Challenge Corporation (MCC) approved a compact program for Sri La

Sri Lanka needs a president hungry for success, not power

Friday, 16 August 2019

The late John F. Kennedy described politics as a “noble adventure, an adventure in which one joins hands with the masses for the service of man”. Not that the Kennedys didn’t play “politricks” in their heyday. But playing “politricks” w

Columnists More

Special Report