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Rupee hits record low of 175.90 on political uncertainty

Reuters: The Sri Lankan rupee fell to a record low on Monday, as political uncertainty triggered by President Maithripala Sirisena’s decision to sack Parliament weighed on sentiment, in line with bonds, market sources said.

The currency hit 175.90 versus the dollar, surpassing its previous all-time peak of 175.65 hit on 1 November.

Sirisena dissolved Parliament on Friday night and called a General Election for Jan. 5, drawing international criticism, in a move likely to deepen the country’s political crisis.

The rupee closed at 175.10/30 per dollar on Friday.

The rupee has fallen 14.4% so far this year, Refinitiv Eikon data showed.

The island nation’s dollar-denominated bonds tumbled on Monday with the 2020 issue falling as much as 2.7 cents to 94.98 cents, its lowest level since at least January 2017, with bid yields soaring to record levels of more than 9%, according to Refinitiv Eikon data.

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