Rupee at record low; stocks up from near 5-year closing trough

Tuesday, 23 October 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee hit a record low on Monday as banks and importers purchased the dollar, while stocks edge up from their nearly five-year closing low hit in the previous session.

The rupee dropped 0.4% to an all-time low of 172.50 per dollar, surpassing its previous low of 171.80 hit on Friday, mainly due to importer demand for the greenback, market sources said. The rupee ended at 172.40/60 per dollar, compared with its previous close of 171.60/80.

Sri Lanka has selected China Development Bank for an eight-year $ 1 billion syndicated loan, the South Asian country’s Central Bank said.

The Central Bank surprised financial markets on 2 October by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from Government securities.

The rupee has weakened 2% so far this month after a 4.7% drop in September against the dollar. It dropped 12.4% so far this year.

The Colombo stock index ended 0.09% firmer at 5,766.00, edging up from its lowest close since 28 November 2013, hit on Friday. It shed 3.6% last month, and lost 9.6% 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. 214.1 million ($ 1.24 million) on Monday, less than a third of this year’s daily average of Rs. 765 million.

Foreign investors were net sellers of Rs. 59.3 million worth of shares on Monday, extending the year-to-date net foreign outflow to Rs. 9.1 billion worth of equities.