Home / Front Page/ Rupee hits record low on importer dollar demand

Rupee hits record low on importer dollar demand


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 28 August 2018 00:16


Reuters: The rupee hit an all-time low of 161.10 per dollar on Monday, dragged down by importer dollar demand and less inflows of the greenback, dealers said.

The rupee closed at 161.05/20 per dollar, compared with Friday’s close of 160.85/161.00.

The local currency surpassed its earlier record of 160.96 hit in the previous session. The rupee declined 0.9% so far this month and 4.9% so far this year. “There was demand today mainly for bond outflows and also some dividend payments,” a dealer said, requesting anonymity. 

“With the currency under pressure, people might not sell until they see a clarity. The inflows are slow, may be, because of the Hajj Festival holidays. The Central Bank does not seem to be concerned. We can’t see them 

intervening.”

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.

Foreign investors sold shares worth a net Rs. 888.8 million ($ 5.54 million) in the last five sessions through Tuesday.

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 ($ 46.77 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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Greening China and BRI: Chinese legal framework for sustainable environment protection

Tuesday, 20 November 2018

The concept and scope of greening the belt and road The Greening BRI is to add the ‘greening’ notion along with the ‘BRI’. Building a ‘Greening BRI’ means adhering to the concept of green development, balanced development, harmony betwee


Political evil paralysing Parliament

Tuesday, 20 November 2018

Our politics has arrived at a point when we must insist on recognising the niceties of human nastiness. Organised horror in Parliament is either trivialised or ignored by most of mainstream media print and electronic.


10 theses on Sri Lanka’s existential crisis: Roots, dynamics, dimensions

Tuesday, 20 November 2018

1.The crisis has deep national, social and psychological roots. Our island contains two consciousnesses or two types of consciousness, two competing states of mind. Contrary to myth, the periphery of our island has the longest uninterrupted colonial


Make toilets and safe sanitation services accessible to all

Tuesday, 20 November 2018

All people everywhere should have access to safe sanitation services, including hygienic toilets that are connected to quality sewage systems. For many people across the WHO South-East Asia Region, as across the world, access to these services never


Columnists More