Home / Financial Services/ Rupee hits record low for seventh session

Rupee hits record low for seventh session


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 30 August 2018 00:00


 

Reuters: The rupee hit an all-time low for a seventh straight session on Wednesday, dragged down by importer dollar demand amid less inflows of the greenback, dealers said.

The rupee, which hit a fresh record low of 161.43 early in the trade, closed at 161.40/50 per dollar, compared with Tuesday’s close of 161.20/30.

The local currency surpassed its earlier record of 161.30 hit in the previous session. The rupee declined 1.1% so far this month and 5.2% so far this year. “The importer dollar demand was there today and there were less conversions,” a dealer said, requesting anonymity. The rupee will be under depreciation pressure with the year-end seasonal importer demand, dealers said. Absence of dollar conversions by exporters and outflows from equities and Government securities also pushed the rupee lower, said analysts. Exporters are holding on to dollars as they expect the local currency to decline further, dealers said. The Sri Lankan currency is also hurt by weakness in the Indian rupee. India is Sri Lanka’s biggest trading partner and the country’s currency, which hit a record low on 16 August, is one of the worst performers in Asia this year. Foreign investors sold Government securities worth a net Rs. 7.5 billion  ($46.5 million) in the week ended 21 August, bringing the outflow so far this year to Rs. 47.4 billion, 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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Untruth is the crisis

Tuesday, 13 November 2018

Political language, said George Orwell, is designed to make lies sound truthful, murder respectable, and to give an appearance of solidity to pure wind. Dr. Sarath Amunugama is the subject of this essay. In addition to his current incarnation of a p


Rise, Sri Lankans – our country needs you now!

Tuesday, 13 November 2018

I am sick, tired and bloody fed up of reading and listening to pessimistic tales of woe on the unprecedented crisis we and our country are facing at this dark moment in time. I am also fed up to the back teeth with reading and listening to lamentatio


Ranil abused and subverted parliamentary democracy

Tuesday, 13 November 2018

TIME: What was the immediate reason for calling an election? President Kumaratunga: I was forced into it by a total breakdown of cohabitation in Government. The Prime Minister (Ranil Wickremesinghe) was determined to harass me and chase me out. He ha


The Bench must ensure that the judges will continue to be trusted

Monday, 12 November 2018

In the backdrop of the recent developments and the strong arguments that have been presented against the dissolution of Parliament saying the President has no constitutional power to do so, before four and a half years into a Parliamentary term, as s


Columnists More