Rupee continues slide, stocks down 0.10-pct in early Thursday trading
ECONOMYNEXT – The Sri Lanka rupee continued its slide against the US dollar in early trading Wednesday, with gilt yields seen increasing and stocks falling 0.10 percent in early trading Thursday, dealers and brokers said.
The Sri Lanka rupee continued to fall to new lows against the US dollar, reaching 157.55/65 rupees against the greenback in early trading Thursday in the spot market. The rupee’s decline against the US dollar is a result of importer demand caused by a money-printing central bank, analyst and dealers said.
The rupee closed Wednesday at 157.40/50 rupees against the US dollar after being quoted as much as 157.60/80 rupees during the day.
Gilt yields were seen increasing in early trading in the secondary market for bonds.
A five year bond maturing in 2023 was trading higher at 10.17/23 percent in two-way quotes, up from 10.10/17 percent the previous close.
A ten-year bond maturing in 2028 was quoted at 10.38/45 percent, increasing from the previous day’s closing of 10.32/42 percent.
The Colombo All Share index fell 6.28 points to 6,527.35 in early trading, while the S&P SL20 of more liquid stocks fell 0.08 percent, down 3.02 points to 3,681.33.
Turnover was 82 million rupees.
John Keells Holdings was trading 50 cents lower at 164 rupees and Sampath Bank was down 3.20 rupees to 312 rupees.
Chevron Lubricants was 7.20 rupees lower at 87 rupees. (COLOMBO, 26 April, 2018)