Reuters - The rupee ended weaker on Friday on persistent worries of capital outflows as incoming President Donald Trump’s policies are seen aiding higher U.S. interest rates and a strong dollar.
Dealers said the Central Bank revised the spot preference to 147.95 per dollar from 147.75.
Rupee forwards were active, with the spot-next traded at 148.90 in early trade before ending at 148.75/85 per dollar, compared to Thursday’s close of 148.65/75.
“The rupee was under pressure. We saw some selling (of dollars) when the spot next hit 148.90 during the day,” said a currency dealer requesting anonymity.
Dealers said exporters were reluctant to sell dollars due to global concerns and uncertainties within the Sri Lankan market following the national budget, which has proposed a revision in corporate and withholding taxes.
Foreign investors might pull out of emerging markets, including Sri Lanka, if the Fed raises interest rates next month, they added.
The rupee is under pressure as foreign investors exit government securities due to new taxes proposed in the budget, dealers said.
Foreign investors net sold government securities of 37.12 billion rupees ($250.81 million) in the five weeks ended 16 November, data from the Central Bank showed.