Rupee ends weaker near record low; stocks steady

(Colombo) REUTERS: The Sri Lankan rupee ended weaker yesterday, near its record low, as banks and importers bought the US dollar, while stocks ended largely unchanged near a five-year closing low hit earlier in the week.

The Central Bank on Wednesday said it has secured a US $ 1 billion eight-year loan from China Development Bank.

The rupee ended at 171.30/45 per dollar, compared with its previous close of 171.00/15.

The rupee had fallen to an all-time low of 171.60 per dollar on October 10 due to foreign selling in government securities and importer demand for greenback. 
The Central Bank surprised financial markets on October 2 by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities. 

The rupee has weakened 1.2 percent so far this month after a 4.7 percent drop in September against the dollar. It has declined 11.5 percent so far this year.
The Colombo stock index edged up 0.03 percent to 5,778.37 points, hovering near its lowest close since December 3, 2013 hit on Monday. 

It fell 3.6 percent last month and is down 9.3 percent so far this year.

Data from the Central Bank showed foreign investors sold government securities worth a net Rs.6.3 billion in the week ended October 10. Sri Lanka has seen a net outflow of Rs.80.6 billion in securities so far this year.

Stock market turnover was Rs.151.8 million yesterday, one fifth of this year’s daily average of Rs.770.8 million and the lowest since September 6.
Foreign investors were net sellers of Rs.46.5 million worth of shares yesterday, extending the year-to-date net foreign outflow to Rs.9 billion worth of equities.