Rupee steady near eight-month low

Thursday, 4 July 2013 02:02 - - {{hitsCtrl.values.hits}}

Dealers’ fears of foreign investor pull out after Moody’s move
Central Bank says would maintain stability by intervening
Stocks down on concerns over rating, rupee

Reuters: The rupee held steady near an eight-month low on Wednesday after Moody’s cut the rating outlook and dealers said the currency remained under pressure on concerns of further foreign outflows. Moody’s cut the outlook on Sri Lanka’s B1 foreign currency sovereign rating to stable from positive on Tuesday, but the Central Bank said the move was ill-advised. The rupee was quoted at 130.50/60 per dollar at 0755 GMT, slightly higher than Tuesday’s close of 130.65. The currency hit a near eight month low in the last two sessions. “With Moody’s outlook cut, foreign investors may have concerns and could pull out from T-bonds,” a currency dealer said on condition of anonymity. “So we still see the rupee under depreciation pressure.” It lost 0.19% through Tuesday, extending the year-to-date decline to 2.35%. Sri Lanka’s main stock index fell 0.44%, or 26.72 points, at 6121.46 at 0759 GMT.

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