Rupee recovers from record low; stocks down amid foreign outflows

Saturday, 29 September 2018 00:09 - - {{hitsCtrl.values.hits}}

REUTERS: The rupee recovered on Friday to close firmer on Central Bank intervention after the currency touched its record low hit in the previous session, while shares fell for a second straight session amid foreign outflows.

The rupee touched its all-time low of 169.40 per dollar hit on Thursday on importer demand for the greenback and foreign selling in government securities, but intervention by the Central Bank helped the currency close firmer, market sources said.

The rupee ended at 169.15/30 per dollar, compared with the previous close of 169.35/55.

The rupee has weakened 4.7% so far this month against the dollar after a 1.2% drop in the previous month, and has declined 10.2% so far this year.

The Colombo stock index fell 0.12% to 5,862.18. The index hit its lowest close since 18 December 2013 on Tuesday.

Data from the Central Bank showed foreign investors sold government securities worth a net Rs. 8.8 billion ($ 52.19 million) in the week ended 19 September, the highest in a long time. Sri Lanka has suffered a net outflow of Rs. 62.3 billion in securities so far this year.

Stock market turnover was Rs. 663.1 million ($ 3.92 million) on Friday, less than this year’s daily average of Rs. 787.8 million.

Foreign investors sold a net Rs. 58.1 million worth of shares on Friday, extending the year-to-date net foreign outflow to Rs. 5.83 billion worth of equities.