Rupee ends lower on importer dollar demand

Wednesday, 16 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended weaker on Tuesday as dollar demand from importers outpaced selling of the US currency by banks and exporters, dealers said.

The spot rupee finished at 153.15/25 per dollar, compared with Monday’s close of 153.10/15.

“There was demand from state banks, probably to pay oil bills and there is not much of selling,” a currency dealer said, requesting anonymity.

“Slight (depreciation) pressure is there (on the rupee) with some import bills and some other outflows.”

Dealers said there was no intervention from the central bank.

Sri Lanka’s central bank is targeting a more flexible exchange rate regime, the Government said last week in a document outlining its policies to the International Monetary Fund.

The central bank has intervened in the foreign exchange market since late February only to build up reserves or to stem excessive movements in the exchange rate, and will continue to do in the future as well, the document released by the IMF showed.

The banking regulator held its policy rates steady earlier in the month and said tightening measures are helping cool inflation and credit growth, signalling receding concerns about price pressure as it focuses on supporting an economy hit by extreme weather.

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.