Sri lanka rupee falls to 149/- against USD

Teller · 1 Sri lanka rupee falls to 149/- against USD Tue Mar 29, 2016 5:59 pm

Teller

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149.00 to the US dollar
Mar 29, 2016 03.50 PM
Reuters
Sri Lanka rupee fell to 148.80/149.00 to the US dollar in the one week forward market Tuesday which is the only market rate available dealers said, as loose monetary policy took its toll.
Another dealer mentioned it will further depreciate as low as 151.90 with in a month.

Joe007 · 2 Re: Sri lanka rupee falls to 149/- against USD Wed Mar 30, 2016 2:21 am

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The central bank is leaving the rupees to fall further and settle with new low to attract foreign investment If the rates are unchanged.
In this case the import will be affected very much in other words they are controlling the imports and a good news for exporters.

There were two options to handle the present economic conditions:
1) increasing the rates to stabilise the rupee against the other currencies

Or
2) leaving the rupees to fall further to attract inward payments and control the imports. ALSO THEY CAN ISSUE BONDS IN $.

So they have chosen the second option.

Anyway they are thinking to increase the money flow into the market by keeping the rates unchanged. On the other hand the imports on oil etc will cost heavily.

Joe007 · 3 Re: Sri lanka rupee falls to 149/- against USD Wed Mar 30, 2016 2:26 am

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They believe that the exchange will improve when they get inward funds..

VALUEPICK · 4 Re: Sri lanka rupee falls to 149/- against USD Wed Mar 30, 2016 10:38 am

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According to some strategists, Asia's Worst Performing Currency (Indian rupee) may be best bet this year. Sri-Lankan rupee also should get some strength.

On the other hand they expect around 5% fall in Japanese yen by the end of 2016. Chinese renminbi may drop marginally around 0.42. Currencies in countries such as Malaysia, Singapore, Taiwan and Korea may drop around 4%.

During last couple of years, Sri-Lankan rupee has devalued twice. Therefore it prevented from rapid fall like some other Asian currencies.

Rather than taking action to improve export competiveness, devaluation has become a passion among some countries.

USD under performed against other currencies during last couple of years. It has got some strength during last couple of quarters.

worthiness · 5 Re: Sri lanka rupee falls to 149/- against USD Wed Mar 30, 2016 2:29 pm

worthiness

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If Rupee deteriorates further (151-155 level) it reveals measures taken by CB are delayed or not successful. Perhaps, CB may go back to former pegging method until international funds flow in.