• USD/LKR likely to reach 134 by year-end: standard Chartered

    Source: FxWire Pro - Commentary / 30 Jan 2015 07:59:05   America/New_York

    Quotes from Standard Chartered:

    -We see further upside for USD-LKR following the Sri Lankan budget announcement. We expect capital outflows to continue given that the budget is likely to be perceived as negative for investor sentiment.

    -Additionally, Sri Lanka's trade balance has deteriorated notably over the past year, weighing on the Sri Lankan rupee (LKR). The announcement of tax cuts on a few key commodities could also partly offset the positive impact of lower global crude oil prices on the external balance.

    -We therefore revise our USD-LKR forecasts higher. We now forecast USD-LKR at 133.0 (132.0 previously) in Q1-2015, 133.3 (132.3) in Q2-2015, 133.5 (132.8) in Q3-2015, 134.0(133.0) in Q4-2015 and 134.5 (133.3) in Q1-2016.

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