Home / Financial Services/ Rupee hits fresh low on importer dollar demand

Rupee hits fresh low on importer dollar demand


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 7 February 2018 00:00


Reuters: The rupee hit a record low for a third successive session on Tuesday hurt by dollar demand from banks and importers, but remittances and greenback sales by a state bank checked the fall, dealers said.

The spot rupee ended at 154.60/70 per dollar, surpassing the previous low of 154.30/35 hit on Friday.

Sri Lanka’s stock, bond and foreign exchange markets were closed on Monday for a special holiday.

The currency fell 0.4% last week, surrendering a 0.2% gain made previous week.

“The demand was severe today. There was importer demand and we saw some foreign banks buying dollars, may be for a profit repatriation,” said a currency dealer.

“A state bank sold some dollars in the morning, but that was not enough to prevent the fall.”

Dealers expect a 2-3% depreciation in the rupee and higher volatility this year on account of debt repayment by the government.

President Maithripala Sirisena’s administration must repay an estimated Rs. 1.97 trillion ($ 12.85 billion) in 2018 - a record high - including $ 2.9 billion of foreign loans and a total of $ 5.36 billion in interest.

Foreign investors bought Rs. 5.9 billion worth of government securities this year up to 30 January, central bank data showed.

The rupee fell 2.5% last year and 3.9% in 2016.


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Singapore miracle – How SL could benefit from trade with Singapore

Monday, 20 August 2018

According to a media report released by President’s Media Division, a committee of experts has been appointed by the President to examine and report on ‘the practical impact and use of the proposed officer policy guidelines and recommendations on


High NPAs in SME sector: Who is responsible?

Monday, 20 August 2018

Non-Performing Assets (NPAs) of the banking sector have been increasing in the recent past. Gross NPA ratio reached about 3.3% as at end of May2018 recording an increase of about 0.8% over the past five months.


DMK Chief “Kalaignar” Karunanidhi excelled as a Tamil film script writer

Saturday, 18 August 2018

Muttuvel Karunanidhi, known to the Tamil-speaking world as “Kalaignar” (artiste), passed away at the age of 94 in Chennai on 7 August. Karunanidhi had been Chief Minister of India’s Tamil Nadu state for a total of 19 years. He was Chief Ministe


Bangladesh could be a happy hunting ground for Lankan entrepreneurs

Saturday, 18 August 2018

Bangladesh has traditionally been hospitable to Sri Lankan entrepreneurs and fortunately, the traditional friendliness has not given way to arrogance with the country’s growing prosperity. This was acknowledged at a meeting of Sri Lankan entreprene


Columnists More