Rupee closes near record low; stocks steady

Reuters: The rupee closed on yesterday near a record low hit earlier this week as banks and importers purchased the dollar, while stocks closed flat with higher turnover.

The rupee ended at 172.80/90 per dollar yesterday, compared with its previous close of 172.60/70. The rupee dropped to an all-time low of 173.00 per dollar on Tuesday, surpassing its previous low of 172.50 hit on Monday.

The Central Bank surprised financial markets on 2 October by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities. 

The rupee has weakened 2.1% so far this month after a 4.7% drop in September against the dollar. It dropped 12.45% so far this year.

The Colombo stock index ended 0.03% weaker at 5,768.54. It shed 3.6% last month, and lost 9.4% so far this year.

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Data from the Central Bank showed foreign investors sold government securities worth a net Rs. 5.3 billion ($ 30.7 million) in the week ended 17 October. Sri Lanka has seen a net outflow of Rs. 85.9 billion in securities so far this year.

Stock market turnover was Rs. 1.26 billion ($ 7.30 million) yesterday, more than this year’s daily average of Rs. 764.6 million.

Foreign investors were net sellers of shares worth Rs. 277.5 million on yesterday, extending the year-to-date net foreign outflow to Rs. 9.4 billion worth of equities.