Home / Front Page/ Rupee hits record low; mild dollar sales ease pressure

Rupee hits record low; mild dollar sales ease pressure


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 29 August 2018 00:00


Reuters: The rupee hit an all-time low of 161.30 per dollar on Tuesday, dragged down by importer dollar demand amid less inflows of the greenback, dealers said.

The rupee, which hit a fresh record low of 161.30 early in the trade, closed at 161.20/30 per dollar, compared with Monday’s close of 161.05/20.

The local currency surpassed its earlier record of 161.20 hit in the previous session. The rupee declined 1% so far this month and 5.1% so far this year.

“There was importer demand. We saw some dollar selling coming in after it traded at 161.30,” a dealer said, requesting anonymity.

The local currency should stabilise in line with the regional currencies as the dollar index paused near one-month lows against major currencies to stand at 94.84 on Tuesday, dealers said.

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 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 ($ 46.8 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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Constitutional paradox: There is no such thing called Election Commission

Wednesday, 14 November 2018

Our Constitution, which was certified by Parliament on 31 August 1978, has 19 amendments; the First Amendment to the Constitution was certified by the Speaker in the same year on 20 November. By the end of 1988, there had been 14 amendments made to t


‘So Sri Lanka’ – upgrade staff, processes, infrastructure at BIA arrivals to be world’s best!

Wednesday, 14 November 2018

24 October, time 12:47 p.m., place – my residence in Colombo My phone buzzes with a WhatsApp message from my old colleague Prasad Fernanado now with Saudi British Bank in Saudi. I am thrilled to see the message ‘Sri Lanka top country for travel i


Qatar crisis: From the Sri Lankans’ point of view

Wednesday, 14 November 2018

The aim of this article is to examine the Saudi blockade over Qatar and its impact in the past 17 months on the country. A special focus will be given to the Sri Lankan workers who have been living in Qatar for the past two decades. The reason why th


The reality of Sri Lanka – household end!

Wednesday, 14 November 2018

Whilst Sri Lanka is debating what is right and wrong on the governance of the country, the Sri Lankan household is falling part due to escalating costs, as per the latest data released by respected research agency Nielsen. For the seventh quarter in


Columnists More