HomeSpot Rupee ends steady on CB defence
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First Guy- Posts : 2599
Join date : 2014-02-22
Spot Rupee ends steady on CB defence
Thu Feb 26, 2015 7:14 am
Reuters: The Sri Lankan spot rupee ended steady for a fourth straight session on Wednesday as the Central Bank defended it via moral suasion amid persistent downward pressure due to higher imports in a lower interest rate regime.
The Central Bank raised yields on 91-day and 182-day Treasury bills by four and six basis points, respectively, at a weekly auction on Wednesday after freezing key policy rates at record lows a day earlier.
The spot currency ended steady at 132.90/133.10 per dollar.
One-week forwards, which were active, ended a tad firmer at 133.40/45 per dollar, compared with Tuesday’s close of 133.45/55, as banks sold dollars.
“The central bank reprimanded dealers who traded one-week rupee forwards above 133.45 per dollar,” said a currency dealer on condition of anonymity.
The Central Bank said on Wednesday imports jumped 15.9% in December 2014 to $1.8 billion.
On Tuesday, it left key policy rates steady at record lows for a 13th straight month, as expected, and said inflation could hit near zero in the first quarter and would remain comfortably low in 2015.
On Monday, it lifted a two-cents-per-day premium limit after lowering it from five cents on 9 February.
It had defended the spot currency at 132.80 levels since 6 February through Wednesday, before allowing it to fall 10 cents against the dollar on Thursday.
The rupee has fallen 1.4% this year through 20 February due to imports, the Central Bank said on Tuesday.
http://www.ft.lk/2015/02/26/spot-rupee-ends-steady-on-cb-defence/
The Central Bank raised yields on 91-day and 182-day Treasury bills by four and six basis points, respectively, at a weekly auction on Wednesday after freezing key policy rates at record lows a day earlier.
The spot currency ended steady at 132.90/133.10 per dollar.
One-week forwards, which were active, ended a tad firmer at 133.40/45 per dollar, compared with Tuesday’s close of 133.45/55, as banks sold dollars.
“The central bank reprimanded dealers who traded one-week rupee forwards above 133.45 per dollar,” said a currency dealer on condition of anonymity.
The Central Bank said on Wednesday imports jumped 15.9% in December 2014 to $1.8 billion.
On Tuesday, it left key policy rates steady at record lows for a 13th straight month, as expected, and said inflation could hit near zero in the first quarter and would remain comfortably low in 2015.
On Monday, it lifted a two-cents-per-day premium limit after lowering it from five cents on 9 February.
It had defended the spot currency at 132.80 levels since 6 February through Wednesday, before allowing it to fall 10 cents against the dollar on Thursday.
The rupee has fallen 1.4% this year through 20 February due to imports, the Central Bank said on Tuesday.
http://www.ft.lk/2015/02/26/spot-rupee-ends-steady-on-cb-defence/
- First Guy
- Posts : 2599
Join date : 2014-02-22
Govt. will defend rupee, has enough forex reserves -Ravi K
Thu Feb 26, 2015 7:15 am
Reuters: Sri Lanka will defend the rupee currency and has enough foreign exchange reserves to prevent any further depreciation, Finance Ministry Ravi Karunanayake said on Wednesday.
The rupee lost 1.4%of its value against the dollar between the start of the year and 20 February and dealers say the currency remains under downward pressure on persistent demand from importers for dollars.
Foreign currency reserves fell 13.2%to $ 6.28 billion in January alone, recent Central Bank data showed, as the monetary authority intervened in foreign exchange markets to defend the currency.
“We can hold it as long as we like it,” Karunanayake told reporters. “There are enough reserves. If anybody thinks that they can take undue advantage, then they are sadly mistaken.”
Karunanayake said on 9 February that the rupee would be held at current levels and “there won’t be any devaluation at all.”
The Central Bank has been defending the spot currency at 132.90 since Thursday after keeping it at 132.80 from 6 February.
The Central Bank has also increased the yield on Sri Lanka’s 91-day treasury bills by 24 basis points this year while keeping its key policy rate at a record low, which currency dealers see as a move to ease pressure on the rupee.
http://www.ft.lk/2015/02/26/govt-will-defend-rupee-has-enough-forex-reserves-ravi-k/
The rupee lost 1.4%of its value against the dollar between the start of the year and 20 February and dealers say the currency remains under downward pressure on persistent demand from importers for dollars.
Foreign currency reserves fell 13.2%to $ 6.28 billion in January alone, recent Central Bank data showed, as the monetary authority intervened in foreign exchange markets to defend the currency.
“We can hold it as long as we like it,” Karunanayake told reporters. “There are enough reserves. If anybody thinks that they can take undue advantage, then they are sadly mistaken.”
Karunanayake said on 9 February that the rupee would be held at current levels and “there won’t be any devaluation at all.”
The Central Bank has been defending the spot currency at 132.90 since Thursday after keeping it at 132.80 from 6 February.
The Central Bank has also increased the yield on Sri Lanka’s 91-day treasury bills by 24 basis points this year while keeping its key policy rate at a record low, which currency dealers see as a move to ease pressure on the rupee.
http://www.ft.lk/2015/02/26/govt-will-defend-rupee-has-enough-forex-reserves-ravi-k/
chutiputhaTop contributor
- Posts : 1948
Join date : 2014-11-09
Age : 37
Location : SL
Re: Spot Rupee ends steady on CB defence
Wed Apr 15, 2015 8:27 pm
Just Look @ Our How Rupee Value Fluctuation
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