Rupee hits record low; stocks at 2-week closing high

Reuters: The rupee touched a record low on Friday as banks and importers purchased US Dollars, while stocks climbed 1.1% to a two-week closing high but foreign investors’ exit from the island nation’s risky assets weighed on sentiment.

The rupee dropped to an all-time low of 173.08 per dollar on Friday, surpassing its previous record low of 173 hit on Tuesday. The rupee ended at 173.05/20 per dollar on Friday, compared with its previous close of 172.80/90. 

The rupee has weakened 2.1% so far this month after a 4.7% drop in September against the dollar. It dropped 12.52% so far this year. The Colombo stock index ended 1.1% firmer at 5,831.96, its highest close since 11 October. It shed 3.6% last month, and lost 8.4% so far this year.

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. 1.6 billion ($9.27 million) on Friday, more than double of this year’s daily average of Rs. 768.2 million.

Foreign investors were net sellers of shares worth Rs. 48.3 million on Friday, extending the year-to-date net foreign outflow to Rs. 9.5 billion worth of equities.

Shares in conglomerate John Keells Holdings Plc ended 3.4% higher, while Hatton National Bank Plc closed up 1.6%, Sampath Bank Plc ended 4.2% firmer and the biggest listed lender Commercial Bank Plc ended 2.3% up.