The Sri Lankan rupee touched its all-time low on Wednesday as importer dollar demand surpassed mild selling of the greenback by exporters, dealers said. The rupee touched an intraday low of 155.90 per dollar, matching the all-time low hit on February 14, before closing at 155.85/95, compared with Tuesday's close of 155.70/75. "There was importer (dollar) demand. We have seen some foreign banks were also buying dollars. Exporter dollar conversions were very thin," said a currency dealer.
"We won't see much exporter conversions until late March." The rupee has weakened 1.56 percent so far this year after declining 2.5 percent last year and 3.9 percent in 2016.
It is expected to be pressured by continued importer demand for dollars ahead of the traditional New Year in April, dealers said. A gradual depreciation in the rupee and higher volatility this year are expected on account of debt repayments by the government, they added.
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