Home / Financial Services/ Rupee steady; violence hurts sentiment

Rupee steady; violence hurts sentiment


Comments / {{hitsCtrl.values.hits}} Views / Friday, 9 March 2018 00:00


Reuters: The rupee ended steady on Thursday as importer dollar demand offset selling of the greenback by exporters even as communal violence in the central district of Kandy continued to weigh on sentiment, dealers said.

After days of violence, a curfew in the Sri Lankan town of Kandy was temporarily lifted on Thursday.

The rupee closed at 155.35/45 per dollar, little changed from Wednesday’s close of 155.35/40. It hit a record low of 155.90 per dollar on 14 February.

“The importer demand in early trade was offset by late exporter dollar sales,” said a currency dealer.

Dealers said trading activity could be muted on Friday as countrywide protests by Muslims over the violence are expected. The rupee has weakened 1.27% so far this year, after declining 2.5% last year and 3.9% in 2016.

It is expected to be pressured by continued importer demand for dollars ahead of the traditional New Year in April, dealers said.

A gradual depreciation in the rupee and higher volatility this year are expected on account of debt repayments by the government, dealers added.

The Government must repay an estimated Rs. 1.97 trillion ($ 12.68 billion) in 2018 - a record high - including $ 2.9 billion of foreign loans and a total of $ 5.36 billion in interest.

Foreign investors sold government securities worth a net Rs. 3.2 billion in the week ended 28 February, 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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Overcoming the crisis: The second freedom struggle

Friday, 14 December 2018

The crisis that has been developing in Sri Lanka, manifesting itself in varied forms at different times since independence, has now taken the form of a constitutional crisis, threatening the survival of the Sri Lankan State. Regardless of the Court


Getting more women in the workforce

Friday, 14 December 2018

The current female labour force participation in Sri Lanka is around 36%. This means that a disproportionate majority of women still remain outside the labour market, with limited or no access to wages, pensions and other benefits tied to gainful emp


Our chit-chat – Can conversations make a nation?

Thursday, 13 December 2018

We are living through fascinating times dominated by online conversations with offline taking backstage. From the Arab spring to Yellow vests in France, the online has proven its potential and power – be it destructive or constructive! A reading o


The vote, the verdict, and the TNA ‘backstop’: Beyond ’56

Thursday, 13 December 2018

“Leader of PLOTE and TNA MP D. Dharmalingam …stated that he believes that Ranil Wickremesinghe has handed in a written assurance of several promises. …The promises are said to include agreements on constitutional amendments, freedom for politi


Columnists More