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Sri Lankan currency hits record low against dollar, says dealers

Three dealers confirmed the rupee traded at 159.10 on the dollar - beyond the previous record-low of 159.00 hit on Friday.


Reuters 11 Jun 2018, 09:42 AM Sri Lanka
  • "Currently, the exchange rates of many countries compared to the U.S. dollars are at historic lows," the central bank said in the newspaper report. (Image Credit: Twitter)

The Sri Lankan rupee slipped to a fresh all-time low of 159.10 per dollar on Monday, pulled down by a lack of support for the local currency from exporters, dealers said.

Three dealers confirmed the rupee traded at 159.10 on the dollar - beyond the previous record-low of 159.00 hit on Friday.

"The rupee is under pressure. I don't see too many people on the dollar selling side. There is big external movement also and this trend is not specific to the Sri Lankan rupee alone. We see the global currencies weakening against the dollar," one dealer said.

He said he expects the dollar will strengthen on the back of the U.S. Federal Reserve's policy meeting this week, while the European Central Bank meeting may also affect the rupee.

The rupee has fallen 0.4 percent so far this month, and 3.5 percent for the year.

The Central Bank of Sri Lanka told local paper The Daily Mirror that recent pressure on the rupee was due to low dollar supply, the greenback's strengthening, rising oil prices, and capital outflows from the emerging markets due to rising U.S. interest rates.

"Currently, the exchange rates of many countries compared to the U.S. dollars are at historic lows," the central bank said in the newspaper report.

The central bank was not immediately available for comment to Reuters.

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