The Sri Lankan rupee fell to a record low against the dollar on Thursday, amid pressure on the currency due to foreign outflows from bonds and stocks as uncertainty from a political crisis dented sentiment.
The rupee hit a record low of 181.00 against the U.S. dollar on Thursday, according to market sources, surpassing its previous low of 180.85 to the dollar on Nov. 28.
The island nation was plunged into crisis in October after President Maithripala Sirisena replaced Prime Minister Ranil Wickremesinghe with former president Mahinda Rajapaksa, without the backing of parliament, leading to protests and downgrades of Sri Lanka’s debt. Wickremesinghe was reinstated as prime minister this week.
The rupee has weakened about 4.4 percent since the political crisis began. The currency dropped 1.8 percent in November, and has lost 17.9 percent this year.