Home / Front Page/ Rupee hits record low for 11th session

Rupee hits record low for 11th session


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 5 September 2018 00:00


Reuters: The rupee fell to an all-time low on Tuesday, marking its 11th straight session of setting fresh record lows.

The rupee, which hit a record low of 161.97 early in the trade, closed at 161.95/162.05 per dollar, compared with Monday’s close of 161.60/70.

The currency surpassed its earlier record of 161.65 hit in the previous session.

“There was (dollar) demand from local and foreign banks. We saw some oil and gas import bills,” a dealer said, requesting anonymity.

“The depreciation pressure remains as exporters are waiting to see the bottom in the rupee fall.”

The rupee will be under depreciation pressure with the year-end seasonal importer dollar demand, dealers said.

Absence of dollar conversions by exporters and outflows from equities and government securities also pushed the rupee lower, analysts have said.

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 Indian rupee, which also hit a record low on Tuesday, has been one of the worst performers in Asia this year.

Foreign investors bought government securities worth a net Rs. 578.3 million ($ 3.58 million) in the week ended 29 August, marking the first week of net buying since April. However, they have net sold Rs. 46.9 billion worth securities so far this year, Central Bank data showed.

Govt. won’t intervene 

in forex market: Eran

Reuters: Sri Lanka will leave the level of its rupee currency to market forces to decide and the Government will not intervene in the foreign exchange market, junior Finance Minister Eran Wickremaratne told Reuters yesterday.

“We will not intervene,” he said. “We have left it to the market. We will just do the right policy and let it sort itself. Never panic about it.”

The currency fell to an all-time low of 161.97 versus the US dollar yesterday, in its 11th straight session of fresh record lows. The rupee, which weakened 1.2% last month, has dropped 5.5% this year.

 


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Reaching global quality standards through Deming Award

Wednesday, 21 November 2018

The importance of quality in the contemporary competitive business environment cannot be over-emphasised. Total Quality Management (TQM)is a company-wide, all pervasive management philosophy, which organisations globally, in many business sectors hav


Ramsar accreditation of Colombo Wetlands: Rebranding Colombo as a Wetland City

Wednesday, 21 November 2018

Colombo, once known to be “kolonthota,” has always been identified as a wetland complex at the heart of the Kelani river delta. Today this city is increasingly drying up, with around 20 sq km left as wetlands which continue to be threatened every


Coup Sri Lanka: some winners, mostly losers

Wednesday, 21 November 2018

As a president proves shockingly stubborn, a nation waits with baited breath as to what His Excellency the loose cannon on a rocky slope will do next. Two Prime Ministers and the fates of their respective parliamentary groups hang in the balance lik


Rising dollar and bank NPA, brothers in arms?

Wednesday, 21 November 2018

The rising Non-Performing Advances (NPA/NPAs) is a matter of concern to the entire financial industry. It is a nightmare. The weekend papers have published some articles based on interviews journalists conducted with respective bank CEOs and also bas


Columnists More