Rupee ends weaker on dollar demand from importers

Thursday, 19 September 2013 00:10 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee ended down on Wednesday due to mild importer dollar demand, while the central bank defended the currency via moral suasion, dealers said, ahead of a US Federal Reserve decision on its ultra-loose monetary policy. Dealers said the three-day forward, or spot-next, was active on Wednesday after the Central Bank directed some banks not to trade the spot above Rs. 132.25. The spot-next ended at 132.35/45 per dollar, weaker from Tuesday’s close of 132.30/40. The Fed will decide later on Wednesday when and by how much it would scale back its asset purchases from $ 85 billion a month. Dealers said any reduction may prompt foreign investors to exit Sri Lankan Government securities, which could put the rupee under pressure. However, Central Bank Governor Ajith Nivard Cabraal said on Tuesday that Sri Lanka would not be hurt by the Fed’s tapering. The currency hit a record low of 135.20 on 28 August, but has recovered since then. It has fallen 3.6% this year. The rupee has been falling since early July when foreign investors started pulling out of local bonds as US Treasury yields rose in expectation of a Fed pullback. The stock and foreign exchange markets will be closed on Thursday for a Buddhist holiday.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.

COMMENTS

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.