US dollar seen stabilizing in Colombo's money markets

21 February 2018 - 240   - 0

While there has been demand for US dollars in recent days as foreigners sold stocks in the Colombo bourse and bonds, the dollar appears to be stabilizing in the money markets here, dealers said
The dollar was trading at around 155.20/155.40 rupees (per dollar) on Wednesday.
Dealers gave mixed signals on the reasons for the appreciating US currency. Some said it was due to political uncertainty while others said it was due to demand unconnected to political developments. However Wednesday’s announcement in parliament that the national government will continue is likely to settle the market.
The volatility was somewhat attributed to foreigners taking out their funds from dividend payments from listed Colombo companies while rising US interest rates was also attributed to an outflow of foreign currency. “When US interest rates rise, US fund managers who park their funds in other countries bring it back to the US,” one dealer said.  
Another dealer, who believed the movement of the dollar was connected to the political uncertainty said the pressure on the rupee was partly due to exporters holding onto their cash overseas in anticipation of a further rupee depreciation while at the other end, importers were booking dollars fearing it would rise further. (Feizal) 


  Comments - 0

  • Leave a comment

Top Stories

Won't contest presidential polls by crossing over to another party : Sajith

United National Party (UNP) Deputy Leader Sajith Premadasa today (Sept 17) said that he does not intend to contest at the presidential elections by...

17 September 2019 - Views : 103

UNP appoints committee to decide on Presidential candidate

17 September 2019

Sri Lanka’s strategic location is important for foreign businesses

16 September 2019

Lotus Tower declared open, see pictures inside

16 September 2019



Features & Analysis

Softlogic Restaurants soon to launch 4th international franchise - Crystal Jade Hong Kong Kitchen

Softlogic Restaurants (Pvt) Ltd, a fully owned subsidiary of Softlogic Holdings PLC, will soo open its fourth interna...

Darshani Arulanandam's tribute performance to poet Subramanya Bharathi

The Swami Vivekananda Cultural Centre (SVCC), High Commission of India, Colombo, will be Organizing an evening of Bha...

Otara among 25 chosen personalities to name endangered baby gorillas in Rwanda

Sri Lankan entrepreneur, Otara Gunewardene was invited by the Rwandan Government as an honorary guest to name a ...

Environmentalists, conservationists gather for tropical biodiversity conference in Sri Lanka

The 12th Asia-Pacific Chapter Meeting of the Association for Tropical Biology and Conservation (ATBC) got underw...