Sri Lankan rupee at record low; stocks up from near 5-yr closing trough

Reuters – ** The Sri Lankan rupee hit a record low on Monday as banks and importers purchased the U.S. dollar, while stocks edge up from their nearly five-year closing low hit in the previous session.

** The rupee dropped 0.4 percent to an all-time low of 172.50 per dollar, surpassing its previous low of 171.80 hit on Friday, mainly due to importer demand for the greenback, market sources said.

** The rupee ended at 172.40/60 per dollar, compared with its previous close of 171.60/80.

** Sri Lanka has selected China Development Bank for an eight-year $1 billion syndicated loan, the South Asian country’s central bank said.

** The central bank surprised financial markets on Oct. 2 by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities.

** The rupee has weakened 2 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 12.4 percent so far this year.

** The Colombo stock index ended 0.09 percent firmer at 5,766.00, edging up from its lowest close since Nov. 28, 2013 hit on Friday. It shed 3.6 percent last month, and lost 9.6 percent so far this year.

** For a report on global markets, click here and for a report on major currencies, click

** Data from the central bank showed foreign investors sold government securities worth a net 5.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year.

** Stock market turnover was 214.1 million rupees ($1.24 million) on Monday, less than a third of this year’s daily average of 765 million rupees.

** Foreign investors were net sellers of 59.3 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 9.1 billion rupees worth of equities.





Source From biz.adaderana
Author: Biz Editor
#SriLanka #News #lka

Powered by WPeMatico