Rupee weakens as USD spot market trades above Rs. 328

Wednesday, 20 May 2026 06:05 - - {{hitsCtrl.values.hits}}

The rupee weakened against the US dollar in the spot market yesterday, with the indicative exchange rate closing at Rs. 326.92 per dollar compared with Rs. 325.62 previously, amid continued pressure in the domestic foreign exchange market.

Market participants said spot contracts traded within a range of Rs. 327.85 to Rs. 328.90 during the session, compared with the previous day’s range of Rs. 326.50 to Rs. 327.50, indicating further depreciation in the local currency.

Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando yesterday told Parliament that the recent depreciation pressure on the rupee was driven largely by global uncertainty, escalating Middle East tensions, rising oil prices and stronger demand for the US dollar.

He said the rupee had depreciated by around 4.8% against the dollar as at 18 May, but argued the decline remained lower than in several regional economies. Dr. Fernando also said importer demand for foreign exchange, delayed conversion of export earnings and market speculation had added pressure, while reiterating that the Central Bank follows a flexible exchange rate policy determined by market demand and supply.