COLOMBO: The Sri Lankan rupee ended flat near a 10-month low, but dealers expect downward pressure on the currency to persist due to importers’ demand for dollars.
The rupee closed at 131.65/70, steady from Tuesday’s close.
It had closed at 131.65/75 on Thursday, its lowest close since Sept. 19.
Dealers said that downward pressure on the rupee could intensify if there were no dollar inflows.
“If the central bank tries to defend the currency, Sri Lankan exporters may lose competitiveness in the global markets with many countries including India having allowed depreciation,” one dealer said on condition of anonymity.
The rupee has fallen 4.1 percent since June 7 as foreign investors pulled out of Sri Lankan bonds and other emerging market assets due to a rise in US treasury yields on expectations of a scaleback by the Federal Reserve of its stimulus program.
Dealers expect the rupee to move in a range of 131.50 to 132.00 in the short term and then will continue to depreciate unless the central bank steps in with monetary tightening measures or significant dollar inflows come into the country.
Sri Lanka rupee ends little changed near 10-month low
Sri Lanka rupee ends little changed near 10-month low
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
