Sri Lankan rupee at record low on importer dlr demand; stx weaker
COLOMBO, Dec 7 (Reuters) – The Sri Lankan rupee traded at a record low in a dull session on Monday due to importer dollar demand, dealers said.
Exporters are reluctant to sell dollars expecting further depreciation in the local currency, they said.
The rupee was at 143.30/35 per dollar at 0650 GMT compared with Friday’s close of 143.23/27. It hit an all-time low of 143.30 on Nov. 27.
"The importer demand is there, the trades are dull, but there are not much of inflows," said a currency dealer, asking not to be named.
Dealers said inward remittances for the festival season would ease the pressure on the local currency in the short term.
Prime Minister Ranil Wickremesinghe on Wednesday warned of pressure on the currency due to a China-led global slowdown and a possible Federal Reserve rate hike ahead of elections in the United States.
Sri Lanka is to seek an IMF stand-by arrangement to fend off a risk that its economy will be hurt next year by repercussions from events affecting major economies.
IMF said on Thursday they do have concerns with the proposed 2016 budget, which does not envisage significant consolidation relative to the expected out-turn for 2015 and Sri Lanka has not made a formal request for IMF help but the fund’s staff are looking at ways to help the island nation.
Sri Lanka’s main stock index was down 0.13 percent at 6,860.72 at 0653 GMT. Turnover stood at 191.8 million Sri Lankan rupees