Sri Lanka rupee hits record low ahead of rates decision - Reuters

Redbulls

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Weaker Rupee - Sri Lanka rupee falls to new low
Mar 13, 2012 (LBO) - Sri Lanka's rupee was quoted at a new historic low of 123.45/60 against the spot US dollar in late trading Tuesday dealers said.

The rupee opened around 121.80 to the US dollars.

Analysts had warned that continued liquidity injections in to money markets to sterilize off-market forex interventions will result in a steady weakening of the currency peg.

One month forward premium was around 1.10/20 rupees, the three month around 5.00/5.10 and the one year as much as 9.35/80 earlier in the day, dealers said.
http://lbo.lk/fullstory.php?nid=2023020855

Last edited by Redbulls on Tue Mar 13, 2012 6:56 pm; edited 1 time in total

K.Haputantri

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THANKS Red.

FXX

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Today Band selling rate = 124

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Bank of Ceylon Rates

Sri Lanka rupee hits record low ahead of rates decision - Reuters Boc10

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Tue Mar 13, 2012 6:41pm IST
* Rupee down on importer dlr demand

* Stocks flat at 3-week low

* Foreign inflows of 164.5 million netCOLOMBO, March 13 (Reuters) - Sri Lanka's rupee hit new record low on Tuesday ahead of central bank's monetary policy decision as heavy importer demand could not be met and exporters stayed away in anticipation of further rupee depreciation.

The rupee closed at 123.30/70 a dollar, down from Monday's close of 122.00/20. Dealers said that the highest trade was done at 123.70.

"Unless you see inflows, the rupee will further depreciate," a currency dealer told Reuters on condition of anonymity. "There is speculation of inflows into the equity market, but we don't know when they will come in."

The rupee has fallen 7.5 percent since Feb. 9, when the central bank stopped defending it. A Reuters monthly forex poll has forecast the rupee to fall as far as 128.50 by the end of August.

The stock market meanwhile moved sideways in thin trade as a lingering pall of negative sentiment due to slower economic growth forecasts and fears of higher interest rates kept investors out.

The island nation's main share index barely moved down to 5,423.26.

The central bank's monthly monetary policy decision, due on Wednesday, also kept investors from taking positions, brokers said.

A Reuters poll of 17 analysts predicts the central bank will raise its policy rates by 50 basis points for a second month to 8.00 percent and 9.50 percent respectively.

The day's turnover was 522.4 million Sri Lanka rupees ($4.29 million) well below last year's daily average of 2.3 billion. Volume was 14.8 million. Last year's daily average was a record 102.7 million.

Foreign investors bought shares worth 164.5 million rupees, extending the offshore net foreign inflow to 3.06 billion rupees so far this year, after a net outflow of 19.1 billion last year.

The Colombo bourse is one of the worst performers this year among Asian markets, with a 10.7 percent loss while the majority have been in positive territory. ($1 = 121.9000 Sri Lanka rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)
http://in.reuters.com/article/2012/03/13/markets-srilanka-idINL4E8ED5VZ20120313

Mettasena

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Will it hit all time high of Rs.150?

Slstock

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Mettasena wrote:Will it hit all time high of Rs.150?

If it goes over Rs 130 then we need to look at other side. Imports and costs. Ideally it should stabilize less than Rs 130 I think.

dindon1

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my guessing is,no matter what ever the point it will reach in near future,but eventually, it will come down to 120 level and stabilize.

Kithsiri

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dindon1 wrote:my guessing is,no matter what ever the point it will reach in near future,but eventually, it will come down to 120 level and stabilize.

My sources say that another devaluation is around the corner and it would sink further down to around 150 level.

Rajaraam

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Kithsiri wrote:

dindon1 wrote:my guessing is,no matter what ever the point it will reach in near future,but eventually, it will come down to 120 level and stabilize.

My sources say that another devaluation is around the corner and it would sink further down to around 150 level.

Dear Mr.kithsiri, This would be a best ever news for the plantation companies. Alredy rubber price exceeded Rs 400/=(last month it was around 350/-)If it futher depriciated plantation sector and export companies will be well off. Hope tea plantation too would be rewarded. Lets watch.

FXX

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Gus I need to buy some USD before end of this month, shall i buy soon or wait ?

Rajaraam

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Rajaraam wrote:

Kithsiri wrote:

dindon1 wrote:my guessing is,no matter what ever the point it will reach in near future,but eventually, it will come down to 120 level and stabilize.

My sources say that another devaluation is around the corner and it would sink further down to around 150 level.

Dear Mr.kithsiri, This would be a best ever news for the plantation companies. Alredy rubber price exceeded Rs 400/=(last month it was around 350/-)If it futher depriciated plantation sector and export companies will be well off. Hope tea plantation too would be rewarded. Lets watch.

Not only plantation sector. Depriciation makes all our shares cheaper for foreigners. So foreign buy may increse rapidly. Then market indices go up much faster. Retailer too would be benefitted. You can sell your share at a higher price. So depriciation is not bad when consider it's immediate reactions.

saint

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Wait for that CB decision!

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Sri Lanka rupee hits record low ahead of rates decision - Reuters

1 Sri Lanka rupee hits record low ahead of rates decision - Reuters Tue Mar 13, 2012 5:16 pm

Redbulls

2 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Tue Mar 13, 2012 5:29 pm

K.Haputantri

3 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Tue Mar 13, 2012 5:32 pm

FXX

4 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Tue Mar 13, 2012 6:22 pm

sriranga

5 Sri Lanka rupee hits record low ahead of rates decision Tue Mar 13, 2012 6:55 pm

Redbulls

6 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 3:07 am

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7 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 4:08 am

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8 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 8:47 am

dindon1

9 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 8:59 am

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10 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 9:18 pm

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11 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 9:20 pm

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12 Re: Sri Lanka rupee hits record low ahead of rates decision - Reuters Thu Mar 15, 2012 9:35 pm

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