Rupee at over 1-week low on importer dollar demand
Friday, 13 December 2013 00:01
-
- {{hitsCtrl.values.hits}}
REUTERS: The Sri Lankan rupee closed at its lowest level in more than a week on Thursday on importer dollar demand ahead of a long weekend, but the market was sluggish as most investors were in a holiday mood, dealers said.
The spot rupee was at Rs. 130.90/95 per dollar at 0550 GMT, its lowest closing level since 2 December. It closed at Rs. 130.80/90 on Wednesday.
“The rupee is weaker on importer dollar demand and we have not seen exporter dollar conversions also,” a currency dealer said.
The currency has gained nearly 0.4% in seven straight sessions through Monday.
Central Bank Governor Ajith Nivard Cabraal said on Tuesday the monetary authority will only go in for limited intervention to prevent high volatility in the currency.
Cabraal said last week that the rupee was expected to remain steady at current levels with most inflows being remittances. Currency dealers said the rupee was facing upward pressure as expatriates were sending money for their families ahead of Christmas and the New Year.
The rupee has gained 3.32% since it hit a record low of Rs. 135.20 on 28 August.
