begins to slide against dollar, sterling
The rupee has begun to weaken against the dollar and sterling amid
growing political uncertainty and high fuel import spending despite
strong economic growth in the first half of the year.
rupee has fallen 2.5 percent to date owing to soaring oil bills
and delays in improvements in the “macro picture”, after
a sharp six percent appreciation in January 2005, HNB Stockbrokers
said. Last week the dollar was quoted at 100.85 rupees and the pound
at 182.10 rupees.
markets anticipated a continuous flow of dollars to the economy
during the post-tsunami rebuilding but the inflows have remained
ad hoc so far due to the slower recovery pace,” the stockbrokers
said in a report.
the other hand, the failure to implement Post-Tsunami Operational
Structure (P-TOMS) has delayed the much awaited aid flow to the
country. Thus the currency is on a threatening depreciating trend.”
However, the brokers said, the expansion of external trade continued
during the first half of the year.
earnings increased by 11.5 per cent during the first half of the
year, reflecting a continuous improvement in all three major export
Expenditure on imports increased by 10.3 per cent during this period.
international reserves have increased because of higher private
remittances, official inflows to the government and the benefit
of debt relief, thus providing some stability to the domestic foreign
we strongly believe that the progress of the peace process and the
resultant aid flow is necessary to maintain the exchange rate in
the current range and to limit the depreciation to four percent