| Rupee falls to over one-week low on importer dollar demandReuters: The rupee fell on Monday to hit a more than one-week low as late importer dollar demand outpaced inward remittances and exporter greenback conversions, dealers said.
The spot currency ended at 130.30/35 per dollar, its lowest since 12 September and weaker from Friday’s close of 130.28/30.
“There was importer dollar demand. State banks also bought dollars at 130.30 for their import demand. We did not see Central Bank intervention,” said a currency dealer asking not to be named. Dealers expect the rupee to be steady at least until the 2015 budget announcement, scheduled for 7 November.
“The weekend local poll results show a hiccup in the Government’s political stability. As long as investor confidence remains, we do not see any drastic fall in the currency,” the dealer added.
Results of a weekend provincial poll showed President Mahinda Rajapaksa’s ruling coalition winning the election with a lower margin as Opposition parties gained ground.
Moody’s Investors Service said on Monday that Sri Lanka’s currency swap agreement with China was a credit positive for the country because it would bolster external liquidity position and enhance trade flow between the two.