Friday, 11 September 2015 16:43
COLOMBO: The Sri Lankan rupee fell 0.25 percent on Friday, hitting a record low as late importer dollar demand outpaced greenback conversions from exporters, dealers said.
The rupee is expected to fall further in the short term if the central bank fails to tighten interest rates or the country does not see strong inflows soon, some dealers said.
The spot rupee ended at 139.30/50 per dollar surpassing its pervious all-time low of 139.00 hit on Sept. 4 and weaker from Thursday’s close of 138.95/139.10.
Some dealers said imports of vehicles might slow down ahead of the budget, but fast moving import goods would continue.
The government will present the 2016 annual budget in November.
Finance Minister Ravi Karunanayake said on Wednesday that the rupee will be brought to an acceptable level before too long and interest rates, which have been on a rising trend, will be pushed down.
State-run banks, through which the central bank directs the market, did not sell dollars or give a reference rate for the currency as in the past, dealers said.
