Sri Lankan rupee ends weaker on importer dollar demand
COLOMBO, July 17 (Reuters) - The Sri Lankan rupee closed
weaker on Tuesday as dollar demand from importers exceeded
greenback selling by exporters, traders said.
The rupee, which traded at 159.95 per dollar during
the day, closed at 159.90/160.00 per dollar, compared with
Monday's close of 159.75/90. It has declined 4.2 percent so far
"There was importer demand. But, the main reason is that
there was not much of remittances or exporter flows," a currency
Sri Lanka's central bank governor, Indrajit Coomaraswamy,
had said earlier that the rupee's depreciation was driven mainly
by external factors and that emerging-market currencies were
The central bank is concerned about dollar hoarding and
market manipulation that is exacerbating the rupee's weakness
and has the tools to correct any misalignment in the exchange
rate, Coomaraswamy told Reuters last week.
The International Monetary Fund (IMF) said last month that
Sri Lanka's economy remained vulnerable to adverse shocks due to
a sizeable public debt and large refinancing needs.
Dealers said the downward pressure on emerging market
currencies was due to a rise in U.S. interest rates and
escalating trade tensions between China and the United States.
Spot rupee hit an all-time low of 160.17 per dollar on June
A strengthening dollar since mid-April has increased the
credit risk of several emerging markets, including Sri Lanka,
ratings agency Moody's said late last month.
Foreign investors sold government securities worth a net 9.4
million rupees ($58,860) in the week ended July 11, bringing the
outflows so far this year to 29.7 billion rupees, central bank
($1 = 159.7000 Sri Lankan)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas
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