Dollar seen continuing at Rs. 160 next week
View(s):Colombo’s money markets this week literally “weathered the storm” as several private banks were in the market seeking US dollars in the process, pushing up the buying price, dealers said.
While there were reports that the dollar had hit a record Rs. 160 this week, dealers said that while this was the buying price most trades went at around Rs. 158.90 and Rs. 159 on Thursday/Friday.
“It (demand for the US currency) has been going up by around 10 cents a day, as there is demand for dollars particularly from private commercial banks,” one dealer explained.
The shortage of dollars in the market is a natural demand owing, among other reasons, to exporters not converting their dollars quick (holding on in case it rises further) and not connected to any speculation. State banks had comfortable levels of US currency stocks due to inflows from remittances from Sri Lankan migrant workers. The Central Bank has stopped its brief intervention in the market last month, relying instead on market forces to keep the rupee from hitting lower levels.